Indians own more real estate in London than Englishmen; Here’s why Indians buy property in the UK
Indians are among the largest number of property owners in London – the heart of the United Kingdom, even before the English themselves. Indians – led by those who have lived in the UK for generations, non-resident Indians, investors who live elsewhere, students and families traveling to the UK for education – are the largest group of property owners in London, followed by English and Pakistanis, according to London . Residential developer Barratt London. These Indian investors – who live in the UK and India – are willing to pay between £290,000 and £450,000 for a one-, two- or three-bedroom apartment in London.
“We are seeing strong demand from Indian investors looking to buy property in London and invest in the stable and long-term property market. Outside of London, most of our products are sold to UK residential buyers, who buy and live in these properties,” said Stuart Leslie – Director of International Sales and Marketing In Barratt London, for FinancialExpress.com. About 30 per cent of sales in London bars in the capital are to pure investors (those who wish to use it as rental property) and in that, 30 per cent include buyers from overseas markets.
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“This year we have seen a growth in the percentage of Indian homebuyers, who make up 7-8 percent of the players in overseas markets. We are really reacting to the source of demand rather than speculation and looking for business,” said Stewart Leslie. In fact, according to a Knight Report Frank, 10 percent of high net worth individuals in India are planning to buy a new home in 2022 and would rather invest in real estate in the local market, followed by international markets in the UK, UAE and the US.
India is by far one of the strongest markets in which we are seeing long-term growth, with foreign investment from India on the rise. Another strong player is the Middle East, with investors from Saudi Arabia, Qatar and Kuwait.”
– Stuart Leslie, Director of International Sales and Marketing, Barratt London
London is a financial and educational center and also one of the important global gateways for investors, and the city is popular with Indian investors or homebuyers. Also, since prices per square foot are almost identical in London and Mumbai and also a similar legal system makes transactions less complicated, it is only natural for Indian homebuyers to look at the London property market. “The reason Indians are comfortable buying property is because of market fundamentals and trust along with the history of Indians investing in homes in London. They are keen to invest in UK residential property markets because they are getting better returns because of the exchange rates and the market presence at the moment. It is Relatively safer market compared to UAE or India.
Besides being a ‘constant market’ for residential property, the UK has pluses such as pleasant weather and shorter travel time compared to other potential overseas markets. “A large number of students and families are moving to the UK for education, especially from India. Stuart Leslie added that applications from Indian students to UK schools and universities increased by 128 per cent in one year. Overall, good educational institutions, Ease of doing business, global outlook, familiarity with the language and growing investment opportunities are some of the main reasons why Indians have always preferred to invest in the UK.
How much does a property cost in London?
The demand is currently for projects nearing completion and completed projects because “people are looking to move quickly after the pandemic.” In terms of property price, the popular Barratt London price ranges from £390,000 to £450,000. “This is not the price people usually associate with the London market but with second or third tier cities. This makes people want to own property in London rather than smaller UK cities.