london

Many rich Indians are among foreigners investing over 3 billion pounds every year in London’s prime real estate market as the metropolis continues to attract the world’s super-rich, latest industry figures show. Several estate agents have highlighted the fact of rich Indians flocking to buy property in London, thanks to a booming economy, favourable foreign exchange rates and increasing numbers of children of rich Indians studying here. Property in most areas in Britain have fallen substantially in the last three years, but foreign capital continues to buoy real estate prices in London. Latest research by estate agent Savills says, “There are more buyers coming from India and Pakistan than China – and they’re spending more. It is this group that Savills identifies as most important to the London market among the emerging economies”. The research, titled ‘World in London’, analyses international buyer activity in the prime London market since 2007, and estimates that a total of 16.5 billion pounds will have been invested over the five-year period by the end of this year (2011). This cash injection means that prime London values now move more in line with other global real estate, commodities and investment markets than domestic UK housing markets, it says. According to the research, buyers from the Indian sub-continent continue to be an under-reported and important force within the market, constituting nine per cent of all buyers in the five million pounds to 15 million pounds price band, with a quarter of all Savills buyers from this region spending in excess of five million pounds. Yolande Barnes , head of Savills research , said, “We think the already established preference of buyers from the Asian subcontinent for London will mean that Indians will be among the most important buyers from the emerging countries in the future”. Barnes added, “We anticipate that London will continue to attract overseas buyers in the foreseeable future, especially with the eyes of the world on the London Olympics next year. The diversity of economies from which these buyers originate and of their motivations for purchase, mean that there will nearly always be an overseas market for London property for as long as London remains a major global city”. In 2010, rich Indians bought residential property worth 290 million pounds in the city’s prestigious areas of Mayfair, Belgravia, South Kensington, Chelsea and Holland Park. Indians show a preference for properties in areas such as Mayfair, Belgravia, Regent’s Park, St John’s Wood. The properties are reported to be second or third homes for a rising number of wealthy Indians. The average property in this segment is a four-bedroom house, with a room for domestic help, used as a second home by rich Indians or their children studying in the city. London is considered to be particularly attractive to the global super-rich because of its accessibility, stability, and the global standing of its financial institutions. It is seen as a magnet to the world’s billionaires.