Buyers from the Middle East will soon be responsible for up to three out of 10 purchases of new prime London properties, according to a new report.
The property consultancy CBRE has done an analysis of the city’s property market after the recent UK election. Before the vote, buyers from the GCC accounted for almost 20 per cent of the newly built homes in prime London districts.
The agency said that the number of enquiries from across the Arabian Gulf has risen since the election, which took place early last month, and that it expected regional buyers to soon account for 25 to 30 per cent of sales.
Safina Ahmad, CBRE’s head of GCC residential agency, said: “London continues to remain the destination of choice for Middle Eastern investors because of its quality infrastructure, stable political and legal framework, and quality of life. The city has always attracted institutional commitments from the region, but we are now increasingly seeing many individual buyers purchasing residential property, treating the city as a second home.”
CBRE’s report compared the cost of prime and super-prime properties in nine global cities. Hong Kong (because of its restricted land mass) was the most expensive, with prime properties costing US$4,500 per square foot and super-prime $9,300. London was second, with prime rates of $3,020 and super-prime of $7,500. Dubai was the most affordable of the global cities ranked by some distance, with prime properties costing $615 per sq ft and super-prime $1,200.
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