The crisis in developing countries may trigger a wave of interest in super-luxury property London

The share of foreign buyers in the real estate market in Central London is decreasing, giving way to British buyers. A recent study of the luxury real estate market from the Knight Frank showed that the proportion of buyers who are UK citizens, is in 2014, 53%, in 2013, the share of the British was 36% and in 2012 27%.

Buyers from Europe, including citizens of the UK is 79% of the market this year, far more than in 2013. when the share of European buyers accounted for only 46%. Especially notable is the strong demand for super-luxury housing.

The report also indicated that the average annual price increase for April 2014 is now 7.5%, but the rate of growth of prices for real estate in the higher price categories is significantly lower. For luxury real estate is more expensive than £10 million or more annual growth was 3.3%. Moderate price growth is very beneficial for the market – buyers are showing great interest in popular and prestigious in London, indexes by location areas of Mayfair, Knightsbridge and Belgravia, but sellers have become more realistic attitude to price.

Super-expensive property in London has made a good spurt in prices in the midst of the financial crisis, and the rest of the luxury properties now pulls on prices, narrowing the gap.

Buyers in the UK jostle for foreign buyers of real estate in London, realizing that the crisis in the Eurozone is getting worse and threatens to collapse the Eurozone. At the same time the UK economy every year is showing signs of improvement and stability. Since the collapse of Lehman Brothers and the financial crisis among the elite of real estate, the share of British buyers is at its peak.

Significantly increased the number of transactions. In the price range of more expensive than £10 million, the number of transactions for the year to April 2014 increased by 54% compared with the period a year earlier.

Meanwhile, against the backdrop of improving economic situation in the UK has become more unpredictable political situation. Was announced a number of changes to tax legislation which has caused excitement in the market. And although minor changes are unlikely to deter investors in the super-luxury housing, this kind of news always are the cause of uncertainty in the market and all sorts of campaign rhetoric, which, typically, will ease the price increase ahead of elections in 2015.

On the other hand, instability in emerging markets, such as the conflict in Ukraine and economic slowdown in China may cause a second wave of capital flight to “safe Harbor” and put new pressure on prices.

Now the situation is such that the share of foreign capital in the purchase of real estate in London in such prestigious indices such as Mayfair, Knightsbridge and Belgravia. fell in 2014 to 26% compared to 51% in 2013.

In the market, “super Prime” London real estate established areas of Marylebone and HydePark – the buyers loved them because they square foot ultra-luxury residential real estate is still lower than in other areas of London. Buyers in London are more expensive appreciate square foot luxury apartment than a square foot of a luxury home. For apartments the price for super-luxury housing is now £3460 per square foot, and square foot house cost £2545.

With the appearance on the market of choice, customers become more picky and more flexible, trying to make the best conditions to buy a property that corresponds to their criteria.

® Maxim Savitsky. 11.06.2014 G.