INDIAN nationals are leading the surge in Asian investment in London’s property market, making up 40 per cent of Asian purchases in the first quarter of 2024, an increase of 9 per cent compared to the same period last year.
Their preferences centre on high-end areas such as Mayfair, with buyers reflecting both traditional manufacturing wealth and a growing class of tech-focused entrepreneurs, reported The Times.
Asian buyers overall accounted for 11 per cent of London property purchases in the first quarter of 2024, up from 6 per cent in 2016.
Chinese nationals represent another significant group, responsible for 34 per cent of these sales, a 10 per cent increase from the previous year.
Many Chinese buyers purchase properties for practical purposes, such as housing their children while they study in the UK, combining this with long-term investment goals.
Key priorities include proximity to transport, safety, and access to quality education.
Hong Kong buyers, who dominated Asian sales in 2021 with 43 per cent, have seen their share drop to 14 per cent as many have already relocated to the UK through the British National Overseas (BNO) visa route, reported the newspaper.
American buyers have also increased their presence, rising from 11 per cent to 14 per cent of all foreign inquiries over the past year. This uptick is attributed partly to a weaker pound, which has made London properties more affordable for US investors.
Turkish buyers are also entering the market, seeking to safeguard wealth amid significant currency depreciation at home.
In the broader context, international buyers accounted for 27 per cent of London property purchases in the first quarter of 2024, up from 24 per cent the previous year.
In the south of England, foreign ownership rose to 17 per cent of sales during the same period. However, the trend towards owner-occupied homes is growing, with many buyers relocating for work or purchasing properties for their children, reported The Times.
Developers are increasingly marketing properties to domestic buyers first, particularly for new-build homes. First-time buyers now outnumber investors in the off-plan market, reversing trends from 2016 when investors dominated these sales.
