Investors Consider London Central Residential Property to Be a Conservative Choice

June 22, 2012 / Russell Legato, Residential Property Analyst

Gold was the optimal investment along with bonds and mutual funds. Now real estate agents in London posit the investments in property in that city are the safest of investments. Since President Francoise Hollande frightened away the super-rich to invest in Belgravia and Mayfair there has been an influx of French investors buying property in London, London Central residential property to be exact.

Investors Consider London Central Residential Property to Be a Conservative Choice

Investors from India are jumping onto the bandwagon in great numbers. This is in high contrast to the drop in confidence in big business.  The super-rich elite from India are choosing to invest offshore. Property in central London has its own set of rules. The average price for a home in the area is £1.2m.

You may or may not know that is nearly six times the UK national average.

A leading person in the know evaluates the situation from an expert’s point of view. It must be someone experienced in the wealth management industry. Central London homes have performed 16 percent higher than gold and 164 percent higher than FTSE. For those investors wanting a safe opportunity, Central London properties are the choice at present. This includes homes in Chelsea, Regents Park and St. Johns Wood.

These homes are good investments in spite of the 15 percent stamp duty imposed on properties valued at more than 2 million GBP. As much as 51 percent of the purchases in Central London were made by Chinese, Malaysians and citizens of Hong Kong and Singapore. The majority were from Hong Kong.

These overseas investors from Asia are buying to assure safe investments in spite of political unrest in their local real estate markets.

Investors among the ultra-rich are growing fast. The Asian countries with developing economies also develop millionaires and billionaires. Suddenly, they have all this money and want a safe place to invest it.

There are currently 351 billionaires in Asia. In 2010 there were only 251. They proliferate in developing economies. As a comparison, North America lays claim to 332 and Europe 251. These figures are reported by a Zurich-based bank.

British purchasers account for only 19 percent of Central London properties. In 2010 it was 22 percent. Asian investors plan to rent the expensive homes. Many of them, 28 percent, used all cash to make a real estate purchase.

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