Remember what celebrated writer Mark Twain said: “Buy land – they’ve stopped making it”? Well, nowhere is this maxim about the value of investing in property more relevant than in London, where prime real estate is always highly sought after and in short supply.
Prime residential property in London follows its own course, largely unaffected by factors that influence the wider UK housing market. That’s because London is an international market with the most diverse range of nationalities buying property than any other key global city.
Demand is kept constant by high net worth buyers from around the world wanting an investment that combines the lifestyle that London has to offer with the security of an immovable Sterling asset. This has become especially evident in recent years, as an increasing number of wealthy citizens from developing BRIC nations have chosen London property as a safe haven investment outside of their own currency. Closer to home, when uncertainty surrounding the future of the euro escalated in 2012, an increasing number of Europeans were urged to move assets out of Europe’s single currency and invest in a London home.
Research by one of London’s most high-profile estate agencies shows that between 2009 and 2012, prime central London property prices rose by 53 per cent. Foreign buyers have driven this growth, with Russians, Indians and Italians in particular fuelling sales of £1million-plus homes – only around half of buyers in this sector are UK nationals. In the “super-prime” market, which refers to residences worth £10million or more, prices rose 9.4 per cent between August 2011 and August 2012.
At Spot Blue, we understand that the purchase of a prime, or super-prime, London property could be part of a larger wealth management strategy and we strive to match the most appropriate investment with the individual needs of each of our clients.
If you are a foreign citizen looking to purchase a luxury residence in London, contact Spot Blue today.