Foreign buyers boost central London house prices
Monday, 28 March 2011 2:13 PM
London's prime real estate market has grown once again as foreign buyers continue to snap up valuable properties in the city.
Average property values were up by 2.8 per cent in the first three months of the year and this represented the sixth consecutive quarter of growth, according to the Savills quarterly prime central London index, which monitors prices from Mayfair to Holland Park and Chelsea to St John's Wood.
Prices in all prime central locations increased and Savills saw the value of its first quarter transactions rise from £3 million in 2010 to around £5 million in 2011.
High-value houses, rather than flats or apartments, were the most sought-after property and according to Savills this investment is driven by international buyers.
In particular, increasing numbers of Middle Eastern and Russian investors have entered the market in the last quarter, encouraged to purchase thanks to a strong oil price.
Yolande Barnes, director of Savills Residential Research, said: "Clearly stable real estate markets like London's are attracting purchasers in the face of global uncertainty and investment market volatility. Prime central London dwellings can act as a store of global wealth in the face of unexpected global events."
However, Savills said that some uncertainty remained over the stability of global conditions, which may impact on London's property market.
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