Overseas buyers now account for almost 50% of all prime central London buyers over the past 5 years. They also account for just under a third of sellers.
The trend means that overseas investors are increasing their share of the London market most noticeable at the top end of the spectrum (£10 million plus).
London’s cosmopolitan atmosphere is a draw however the exchange rate and London’s role as a safe haven for international money is the primary driver in the current market. Property in desirable locations are increasinly being held as investment assets driving a price growth in 2010 of around 4.6% as opposed to neligable increases in the remainder of the market.
The main “prime” areas are Westminster and Kenstington & Chelsea where the value per hectare in the latter borough tops £50 million. Some commentators are still predicting a meduim range (3-5 year) price increase of around a third on prime central London properties so this trend of foreign investment looks set to continue.
If you are thinking of investing or buying in Central London contact Mark Sadler, property partner at kenneth elliott + rowe solicitors on 0170875757 or email email@example.com