Middle East and China investors are currently ruling the London residential real estate market. Russia investors, on the other hand, choose to rent most of the time.
According to the Super-Prime London Insight report by Knight Frank in February, despite of the sluggish economy in China and all the geopolitical issues around the world, London's prime real estate continued to attract foreign investors.
Knight Frank, global head of residential Andrew Hay, explained that Middle Eastern investors are attempting to widen their span of property ownership options and many of them see London as a potential market.
Hay further stated that UK properties are apt for both residential and commercial purposes for foreign investors, especially those looking to broaden their territories and assets. Most of the time, these investors come from foreign countries like United States and Germany.
The consultancy firm also revealed that London's top residential locations include Mayfair and Kensington, which are considered prime developments with an estimated value of over $14.32 million.
Numerous properties have experienced several jaw-dropping transactions with the highest price at $5,730 and $11,460 per square feet in Mayfair and Knightsbridge, respectively. Recently, these new prime real estate properties had experienced an increase in terms of overall transactions from one-fifth in 2012 to one-third in 2015.
However, Hay revealed that investors from Russia still command the market, although most of them are renting and not actually purchasing assets. Hay thought that the Russians are bidding their time, waiting to see how things play out back home. Frank also pointed out that the country's oil-related economic downfall and economic sanctions play vital roles.
Experts say that demand of investors is currently centered only in a few parts of the property markets. They stressed that countries like Singapore and Hong Kong, where acquisition costs have significantly increased, have been diverting people's interest.
London, according to them, is an exception as its demand for residential properties continues to surge, CNBC reported.
