The London real estate market is back the Russians

The market for super-expensive London real estate again experiencing increased interest from buyers. Prices for luxury housing began to fall in the spring of 2014 and apparently now the time came when they once again become attractive to buyers. According to the data provided by the international Agency of real estate Knight Frank, the number of properties in the price range more expensive than £10 million sold for the period from January to October 2014 rose by a third compared to the same period in 2013 and was 92 % higher than the same period in 2012.

This comes at a time when everywhere rumors about the fall of the market of elite housing, and pending the introduction of a mansion tax after the election in may 2015. Due to the inherent quiet of the two factors, prices in the top sector of luxury London real estate was reduced by 5% – 10% , and that was the biggest motivation for buyers.

The market finally came a time when the expectations of buyers and sellers coincide, reaching realistic agreements about the price. For example, according to Knight Frank , in June and July 2014, the company sold the same number of houses more expensive than £10 million, as in the previous 4 months.

Experts at Knight Frank believe that the talk about the cooling of the luxury real estate market of London is exaggerated due to the fact that many data on sales were not included in the official reports. So, for the last quarter were concluded quite a lot of transactions in the planning stage of new facilities. These sales are only now becoming available to the public and needs to significantly change the picture about the market , which was previously formed.

In the example of the success of construction in Central London, British Land’s Clarges Mayfair.

Agency Knight Frank says that in many cases the reason for the boom in the market of elite real estate that returned to the market buyers from Russia.

The Russians, after a short pause associated with geopolitical instability, with greater activity began to buy up property in London.

It has also increased the number of buyers from China are buying property in the price range of more expensive than the £10 million increase in the interest of buyers from China is associated with the deterioration of economic indicators of China, when many wealthy Chinese families began to choose London as their place of residence.

The share of buyers from Russia for 6 months in the price range of £10 million+ 21% and for the six months preceding this period is 13 %.

All this is happening against the backdrop of a rapidly falling ruble relative to other currencies.

The growing interest in property in the UK is in step with the increase in the number of investor visas, which turn the citizens of Russia. The Russians do not even stop a significant rise in the investor visa in November 2014.

Since 2009, the cost of real estate is more expensive than £10 million has increased by 48%.

Now, when buyers from the UK and Europe are in no hurry to make trades on the real estate market of London under the influence of a rate hike by the Bank of England and the introduction of a mansion tax, buyers from Russia and China care little about the internal factors of the real estate market in London, they attracted a significant drop in prices, make their purchases under the influence of foreign policy instability, considering London safe haven for their capital.

® Helen Antre 26.11. 2014.

Publications in press about our company

Why buyers from Russia should not fear sanctions

Luxury apartment – Hyde Park – £65 million

Mansion on Mayfair £ 32,999,950

KNIGHTSBRIDGE SW1X – £19.5 million

MONTPELIER SQUARE, KNIGHTSBRIDGE SW7 – £13.3 million

QUEENSBERRY PLACE – £ 12.5 million

SLOANE STREET, KNIGHTSBRIDGE SW1X – £ 12,950,000

HENRY MOORE COURT, MANRESA ROAD, SW3 £ 12,000,000

TREVOR STREET, KNIGHTSBRIDGE SW7 £ 7,950,000

KENSINGTON SQUARE, KENSINGTON W8 – £ 7,000,000

PARKSIDE, 28-56 KNIGHTSBRIDGE SW1X – £ 6,995,000