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Tue 21 Jan 2020 11:15 AM

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London's community of wealthy Middle East property buyers continues to grow

Middle Eastern buyers continue to make up a growing percentage of ultra-rich property buyers in London

London's community of wealthy Middle East property buyers continues to grow

Middle Eastern buyers accounted for 19.6 percent of buyers in London in 2019, up from 16.3 percent the previous year.

As the number of new prospective buyers in London rises to the highest in more than 15 years, the percentage of wealthy buyers from the Middle East who are targeting the British capital also continues to grow, according to new data.

While London real estate company Knight Frank has not released exact figures, it reported that the number of new prospective buyers who registered with it during the second week of January soared 92 percent year-on-year and is at its highest weekly total for 15 years.

Tom Bill, head of London residential research said in a press statement: “The reasons for this uptick include the relatively benign global economic backdrop, ultra-low mortgage rates, the currency discount and the fact prime residential markets have re-priced in response to political uncertainty and tax changes.”

“The extent of the pent-up demand that has built over 2019 could also inject more urgency into the market. In the final quarter of last year, there were 10 new buyers for every new property listed in prime central and outer London, the highest ratio in more than 15 years,” he added.

Knight Frank also said that in the area-rich segment – properties above £10 million ($13m) –  Middle Eastern buyers accounted for 19.6 percent of buyers in London in 2019, up from 16.3 percent the previous year.

In Knight Frank’s recent Global Residential Cities Index, released last week and based on figures for Q3 2019, it showed that London ranked 120th in the world, out of 150 surveyed cities, with average property prices down 0.4 percent in the previous 12 months. By comparison, Dubai declined 7.3 percent and Abu Dhabi was down 7.7 percent, the report said. The top city was Budapest, which was up 24 percent.

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