Friday, 6 July 2012 12:44 PM
International buyers account for 34 per cent of all property sales in the prime London market, according to Savills.
The upmarket estate agent said the proportion of overseas buyers has grown from 27 per cent in 2007 and reflects London’s status as one of the most cosmopolitan cities in the world. Some 35 per cent of Greater London residents were born abroad.
Two-thirds (66 per cent) of prime London overseas buyers live and work in London and were buying their main residence.
International buyers now account for 65 per cent of buyers in the new development market, rising to 70 per cent in prime central locations and 78 per cent for new-build property over £5 million. This reflects strong overseas marketing campaigns.
Western Europeans and French and Italians in particular have the biggest market share after UK buyers with 15 per cent of the resale market and 8 per cent of new build sales.
The biggest spenders are buyers from Eastern Europe and the former Soviet Union who spend an average of £5.7 million in the resale market and £7.2 million on new build.
Chinese and Asia Pacific buyers have a 31 per cent market share of the new build market against 5 per cent in the resales market.
Overall, international buyers outnumber sellers by two to one and Russians, French, Chinese and Italians are the biggest net investors. In contrast UK owners are the biggest net sellers and only North Americans, Swedes and Irish sold more than they bought in 2011/12.
Yolande Barnes, head of Savills residential research, said: “There are perceptions that international buyers have turned swathes of prime London into dormitory areas, but our research explodes this myth. The majority of overseas buyers are seeking homes rather than pure investments. Two-thirds of international buyers in the resales market live and work in London and are acquiring their primary residence. In prime central London the figure is just under half (46%), in prime south west London 83 per cent and prime north London 79 per cent.”
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- overseas investors