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.”