Foreign buyers continue to snap up new homes in London
Posted 16 October 2013 by Keith Osborne
More than two-thirds of all new homes in Prime Central London were sold to international buyers in the two years to June 2013, fresh research shows. According to the study conducted by Knight Frank, 69% of prime central London new-build purchases were to foreign buyers by nationality, but only 49% by residence.
"The higher share of international demand for new-build property on both measures, 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," says Knight Frank's Liam Bailey.
Knight Frank's analysis confirms that Europe, the Middle East and Russia are leading the field on both measures - as a source of buyer nationalities and as key hubs for non-resident purchasers.
Bailey continues: "This strong international demand for central London property has been widely noted over recent years."
High international demand for new-build homes in London has helped to fuel the housing market recovery in the capital in recent years, pushing property prices higher in the process, with many experts expecting them to increase further over the next few years.
The Centre for Economics and Business Research estimate that the average price of a home in London will exceed £500,000 by 2018, supported partly by the introduction of the government's Help to Buy scheme.