London’s luxury real estate boosted by overseas buyers
The UK may be far from recovery but the top-end of the London residential real estate market saw a remarkable revival during 2009.
With a strong 2.1% growth in December, prices have now risen 13.8% in the nine months since March, meaning prices are only 13.4% below the level they reached in March 2008 according to Knight Frank.
Liam Bailey, head of residential research, Knight Frank, commented:
“In recent months the more expensive £5m-£10m and £10m+ price brackets have caught up with the price growth which initially began in the sub-£2.5m segment in the Spring. During December, the strongest market was the £5m-£10m sector with 2.6% growth.
“The prime London market has been the strongest property sector in the UK this year, benefitting from substantial inward investment from overseas buyers looking to take advantage of the weak pound and lower overall prices. The number of buyers increased by 25% in the whole of 2009 compared to 2008. Led by interest from Russia, Europe (especially Italy) and the Middle East.
Indian buyers have also taken advantage of the weak pound as a great opportunity to buy high end London real estate at a fraction of the price. They see this as a once in a lifetime opportunity to get a London real estate bargain which should give good returns once the economy rebounds. Many Indian investors have used London property finding services to alert them to bargains and sales are being concluded rapidly according to London agents.
It’s not just residential real estate investors buying UK property, Indian property developers looking to diversify have also now started to buy undervalued UK real estate assets as they move away from the troubled Dubai market.
Tags: Indian property developers, London real esate, London residential real estate, London’s luxury real estate, UK real estate, undervalued UK real estate assets
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