Strong demand from abroad drives upward price trend
There is no sign of any fall in demand here. London is one of the most important financial centers in the world. Many banks have increased their presence here recently, which has led to an even greater demand for high-end homes. In the very top segment, wealthy foreign buyers are responsible for the upward price trend. Many buyers work in the finance industry. Residential property at a prime London address is also a status symbol for many affluent individuals. Approximately 58 percent of buyers have sufficient equity to not have to rely on any form of mortgage lending. 55 percent are private investors, while 45 percent are institutional investors.
The unrest in the Eurozone is leading to yet another significant rise in interest from investors based in continental Europe. Around 60 percent of buyers are foreign nationals who are looking to invest their money outside of the Eurozone. This was particularly true of Greek nationals in 2010 and 2011, followed by wealthy Spanish and Italian buyers.
The level of demand from Russian, Kazakh, Chinese and Middle Eastern clients is also growing all the time. But Engel & Völkers in London is also registering a high level of interest from France and Germany, as many regard an investment in the city as a safe haven for their wealth. The demand for tenancies is being driven predominantly by British nationals, closely followed by other Europeans.
In addition to rising prices, demand is leading to a reduction in the property's time to market. Exclusive properties in prime locations are usually on the market for no longer than a month. Besides a sought-after address, a prerequisite here is a very high standard of finish.
There is no sign of any fall in demand here. London is one of the most important financial centers in the world. Many banks have increased their presence here recently, which has led to an even greater demand for high-end homes. In the very top segment, wealthy foreign buyers are responsible for the upward price trend. Many buyers work in the finance industry. Residential property at a prime London address is also a status symbol for many affluent individuals. Approximately 58 percent of buyers have sufficient equity to not have to rely on any form of mortgage lending. 55 percent are private investors, while 45 percent are institutional investors.
The unrest in the Eurozone is leading to yet another significant rise in interest from investors based in continental Europe. Around 60 percent of buyers are foreign nationals who are looking to invest their money outside of the Eurozone. This was particularly true of Greek nationals in 2010 and 2011, followed by wealthy Spanish and Italian buyers.
The level of demand from Russian, Kazakh, Chinese and Middle Eastern clients is also growing all the time. But Engel & Völkers in London is also registering a high level of interest from France and Germany, as many regard an investment in the city as a safe haven for their wealth. The demand for tenancies is being driven predominantly by British nationals, closely followed by other Europeans.
In addition to rising prices, demand is leading to a reduction in the property's time to market. Exclusive properties in prime locations are usually on the market for no longer than a month. Besides a sought-after address, a prerequisite here is a very high standard of finish.
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