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The number of foreign buyers in London has turned from an interesting footnote into a true phenomenon.
Overseas buyers now account for more than 50 percent of purchases, according to a report released today by Knight Frank, the property company.
In upper crust neighborhoods Mayfair, Kensington and Hampstead, international buyers accounted for 60 percent of prime purchases. For properties priced higher than £5 million, the percentage of foreign buyers is 68 percent, compared to 39 percent December 2008, according to Knight Frank's report.
The drop in the pound is certainly a key factor, making London more affordable for buyers using foreign currency.
“The weakness of the pound ensures that effective discounts available to foreign buyers are still very significant,” said Knight Frank head of residential research Liam Bailey. “Chinese buyers are still able to secure a 31 percent discount on 2008 prices. Buyers from Hong Kong, the US, Saudi Arabia, Singapore and Malaysia are all able to secure discounts of around 28 percent.”
Russians accounted for the most international purchases, with 13.9 percent, followed by buyers from the United States at 11.2 and Italy at 8.8 percent. As noted in an earlier Knight Frank report, Asian buyers are playing a key role in new build and investment purchases.
Thanks to the international buyers, prices in central London are up 24 percent since March of 2009.
