Foreign buyers have overtaken the number of Britons buying London properties worth more than £2m, research by Knight Frank has shown.
According to the survey, Russians, Americans, Emiratis, Chinese and Indians saw London properties as a “safe haven investment” and bought more than half of London’s most expensive homes in the past year.
Liam Bailey, Knight Frank’s head of residential research, said wealthy foreigners were increasingly attracted to buying luxury London property as a “safe haven investment” at times of political turmoil in their home countries.
Russians were top on the list, buying 8.5% of all London properties over £2m, followed by Emiratis, Americans and Chinese who snapped up 2.8% each. Buyers from eurozone countries accounted for 9.5%, Indians bought 2.6%, Hong Kong 1.8%, and Swiss buyers 1.1%.
“The key issue which has propelled London prices over recent years has been an appetite from global purchasers for tangible investments,” said Liam Bailey, Knight Frank’s head of residential research.
“Add in ultra-low interest rates, together with the fact that not only is London outside the eurozone but the pound is weak, and you have the perfect ingredients for that heady cocktail – the safe haven investment.”
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