Arab Spring unrest has spurred fresh interest in the city's luxury properties as wealthy buyers seek a safe haven from the political turmoil, but investors should broaden their portfolios, the Hong Kong-based company said in a report.
"We are encouraging our clients to diversify their portfolios into new London boroughs, in order to open up new opportunity," Robert Pearce, director of IP Global, said in a statement. "Throughout 2011, GCC investors have increasingly viewed the London real estate market as a relatively ‘safe haven' for capital... we expect this trend to continue into 2012, as Middle Eastern investors seek long-term stability through real assets, amidst increasing volatility in global equity and bond markets."
Luxury home prices in the UK capital have soared 40 percent since March, the consultancy said in November. Values of properties costing an average of £3.7m ($5.9m) rose by an average of 12.5 percent in October from a year earlier, the London broker said, bolstered by Arab buyers.
"The ramifications of the Arab Spring are still not fully played out - buyers from this region are still looking to invest in London," the company said.
Buyers in the luxurious development, which includes 86 apartments overlooking either Hyde Park or Harvey Nichols, are said to include Qatar's Sheikh Hamad Bin Jasim Jaber Al-Thani and Mohammed Saud Sultan Al Qasimi, head of finance for the government of Sharjah.
Between 20-25 percent of sales were to Middle East buyers, with the cheapest apartment in the development costing £5.75m ($9.2m), Arabian Business reported in June.