MidEast buyers snap up 7.5% of all London property sales

Investors from the region are third most active in prime residential market in 2012 - Knight Frank
MidEast buyers snap up 7.5% of all London property sales
(Photo for illustrative purposes only)
By Andy Sambidge
Sat 19 Oct 2013 10:23 AM

Middle East investors were the third most active in the Greater London's prime residential real estate market last year, according to new figures.

Knight Frank said the region's buyers made up 7.5 percent of the total prime sales in the English capital city during 2012.

Only European and Russian and CIS investors were more active in the London property market than those from the Middle East with 16.6 percent and 9.1 percent of sales, according to Knight Frank.

The analysis of all £1m+ sales in London over the past year showed that 49 percent went to foreign buyers, although only 28 percent were non-resident in the UK.

It also showed that on prime London sales since June 2011, 69 percent were snapped up by foreign buyers.

Knight Frank said: "The higher share of international demand for new-build property compared to the wider market, relates to the attractiveness of new-build property for investors who prize the convenience and

lower maintenance offered by new-build property, making it especially attractive for buyers looking to let their properties.

"This strong international demand for central London property has been widely noted over recent years. What we wanted to understand, was whether there were limits to international demand as one moves away from the central London postcodes."

To understand the scale of international purchases across Greater London, Knight Frank assessed a sample of 3,500 property titles for new-build property purchased in the 24 months to June 2013. It selected developments in all 33 Greater London boroughs, with sales prices ranging from £200,000 to £5m.

Earlier this year, Jones Lang LaSalle tied up with a number of British developers to offer new build property in London for investors in the UAE.

The agency opened a desk in Dubai to offer real estate from developers, including the Berkeley Group, Barratt Homes and British Land, to tap into the growing demand for luxury property in London, its regional CEO said.

“The London market is very international and the Middle East is an important source of buyers. Last year our London colleagues sold more than £150m of property into GCC countries,” said Alan Robertson.

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