Increase in Indians buying into the London property market

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London Market:

A recent report from
property consultants Knight Frank says that there’s been an 11%
increase in the number of investors from the Indian subcontinent
buying in the prime central London property market over the 12 months
to June 2019.

In what Knight Frank
terms the super-prime market, it attributes the increasing sales to
discounted prices and favourable exchange rates for the Asian buyers.

Knight Frank
identifies the main locations of interest to these Indian buyers as
Mayfair, Belgravia, Hyde Park, Marylebone and St John’s Wood.

The report states
that:

“An effective
discount of about 20 per cent, taking into account the currency and
price movements in prime central London, in the period between the EU
referendum and October 2019, has benefited Indian buyers.”

The report further
identifies the profile of Indian buyers as wealthy Indians, becoming
younger, and says 21% could be classed as “ultra high net worth
individuals”, favouring the UK as an investment target.

Shishir Baijal,
chairman and managing director, Knight Frank India says:

“London has always
been a hotspot for Indian investors due to its economic and political
importance. Despite the recent political and economic developments,
the long-term economic fundamentals for the market has remained
strong and is therefore continuing to generate interest amongst
Indians looking to purchase properties outside the country”.

When compared to
investments in the Indian markets, he says, yields for both capital
and rentals are higher.

“As the domestic
economy hits a slow block, we can expect Indians to continue the
momentum of investments in a mature market such as London that offers
higher returns and a relatively shorter hold period.”

Alasdair Pritchard,
Knight Frank Private Office and Knight Frank’s ambassador to India
says:

“London will
always remain an interesting market for wealthy Indian buyers. Many
have an affinity to it — enjoying the history, the culture and
lifestyle on offer. A large number also send their children to the UK
for education, investing in property at the same time.”

Rory Penn, joint
head of Knight Frank’s Private Office says:

“Beyond Brexit,
there are global trade and geopolitical tensions that mean other
super prime residential markets have slowed. While there are fewer
discretionary buyers in London, well-priced and good quality stock is
seeing strong interest and leaves me convinced that demand will
accelerate once Brexit has been resolved.”

London Super-Prime Sales Market Insight-Winter 2019′, Knight Frank

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