Home Property Foreign buyers have boosted the prime London market to the tune of £3.3bn so far in 2020

Foreign buyers have boosted the prime London market to the tune of £3.3bn so far in 2020

by LLP Finance Reporter
18th Nov 20 3:57 pm

International real estate experts on residency and citizenship through investment, Astons, has revealed which nationalities are currently fueling the top tiers of London’s property market.

Aston’s analysed sold price records across London’s prime postcodes so far this year and found that the average sold price is currently just over £1.190m, with some 6,438 transactions completing already in 2020.

As a result, market activity in the prime thresholds of the London market has resulted in an estimated £8.1bn worth of property being sold.

With foreign buyers accounting for 41% of this market activity, London has seen a boost of £3.321bn to the prime market from foreign shores.

When it comes to the top 10 nationalities for prime London property purchases, the French currently account for the largest number of sales. 11% of prime transactions by foreign buyers have come from French nationals so far in 2020, bringing an estimated value of £365m in prime property sales to the London market.

Homebuyers, from Hong Kong and the USA, have also been busy, both accounting for 9.2% of foreign property purchases in the capital so far this year. Based on the current average sold price of prime property, this means both nations have brought an estimated £305.5m to the London market.

High-end homebuyers from China and India have also accounted for a large proportion of foreign buyer activity this year, accounting for 8.3% and 7.3% of transactions respectively. As a result, Chinese buyers have purchased property to the tune of nearly £276m, while Indian buyers have spent £242m in London’s prime market in 2020.

Managing Director of Astons, Arthur Sarkisian said, “Despite the current pandemic, foreign buyers continue to see London as an attractive investment, and this is evident based on the healthy level of transactions taking place and the sold prices secured.

This demand is being driven on two fronts. First of all, by the current stamp duty saving on offer, but also in advance of the additional 2% surcharge for non-UK buyers which is due to be implemented in April of next year.

We should see this demand remain strong right up until these deadlines at which point the market will return to a more recognisable level of normality.”

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