Foreign buyers snapping up prime central London property
Real estate investors from overseas are continuing to look for opportunities in the heart of London, a new report has stated.
According to figures from Knight Frank, 41 per cent of those who snapped up prime central London property worth more than £1 million during September hailed from outside the UK.
Meanwhile, foreign nationals accounted for more than half of those who purchased accommodation valued at £2 million or more.
Knight Frank said much of this interest in prime central London property is coming from Russia and India, as well as the US. Furthermore, it noted that buyers from other European countries are also finding the city an attractive option, as many hail from France and Italy.
The market's popularity among foreign purchasers led to a surge in prices in the heart of London. Indeed, the value of prime central London property has gone up by 0.7 per cent this month. This means buyers can expect to pay about ten per cent more than they would have done this time last year.
Furthermore, it suggests that those who have purchased prime real estate in London for investment purposes could potentially get healthy returns should they choose to put their property on the market in the near future.
Knight Frank flagged up Knightsbridge and Hyde Park as two of the main hotspots of activity in the last few weeks, along with Belgravia and Marylebone.
"Average prime property values in central London now stand at a new record high, some 15 per cent above their pre-crisis peak in March 2008," the organisation commented.
Knight Frank added that the surge in prime property values in the area has come despite recent changes to the stamp duty regime that apply to properties worth more than £2 million.
However, the reforms did slightly dent sales of homes worth £2 million to £5 million, as a 20 per cent decline was recorded between July and September.