London:
Two years ago, it was an emerging trend, but Indians buying houses in London has now become an established fact. Courtesy, falling housing prices in Britain.
Several London-based major property dealers have highlighted the fact of rich Indians swooping on property in London, thanks to a booming economy, favourable foreign exchange rates and increasing numbers of children of rich Indians studying here.
The latest research confirming the Indian position in the London housing market is by Knight Frank Residential Research, which says that the number of nationalities buying property in London has hit a new record, with 61 buying in the 12 months to the end of February this year.
Other research conducted by estate agent Savills reveals that in the residential property market in which each house is worth 5 million pounds and above, Indians now figure as the second biggest foreign buyer group.
Liam Bailey, head of Knight Frank Residential Research, said, "Looking ahead at how these trends will change over time, London's leading wealth managers and private bankers recently confirmed, in our Super-Prime London Survey, that the 10 nationalities most likely to grow their share of purchases in the central London market over the next 12 months were: 1 Russian, 2 Chinese, 3 Indian, 4 UAE, 5 Other Middle East, 6 Egyptian, 7 Italian, 8 Lebanese, 9 Turkish and 10 Brazilian."
Yolande Barnes, head of research at Savills, said, "Indians are a force to be reckoned with this year as they continue to buy prime residences in London. The favourable exchange rate brought foreign investors to the city's property market in 2010."
Rich Indians bought residential property worth 290 million pounds in the city's prestige areas of Mayfair, Belgravia, South Kensington, Chelsea and Holland Park during 2010.
Jonathan Hewlett, head of Savills London, said, "Indians have a preference for areas such as Mayfair, Belgravia, Regent's Park, St John's Wood".
He added, "The super high net worth individuals (global billionaire status) look for very substantial properties at the very top of the price range, probably in the 50 million pounds plus bracket, while high net worth Indian buyers have budgets of 10 million pounds to 20 million pounds".
The properties are reported to be second or third homes for a rising number of wealthy Indians, who now account for 7.3 per cent of all sales in London's 5 million pounds-plus residential property market.
This puts India ahead of the Asia-Pacific (7.2 per cent) in the city's 2.6 billion pounds super-prime real estate market.
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.
The largest buyers in the super-prime segment of London are still the British, who bought 40 per cent of the properties.
The city continues to lure Europeans, including residents of the former USSR, who hold a 20 per cent share.
London is said 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.