As the Indian property market more wriggles and squirms than crashes and burns, more and more Indian investors are pouring their investments into London property. In fact, according to the latest data from leading estate agent Savills, Indians are now the biggest foreign buyers of London property, overtaking China for top spot.
India’s growing economy, expanding middle class and favourable currency exchange rates, have encouraged more Indian investors to buy homes in London.
“There there are more buyers coming from India and Pakistan than China – and they’re spending more,” the Savills report said. “This group is now the most important to the London market among the emerging economies.”
In India, the once booming property market is looks to be heading for a fall, with sales and profits on the decline, banks increasingly cagey about lending, and many developers starting to look seriously overleveraged. It is starting to look suspiciously like Dubai; with cranes constructing 1000 foot skyscrapers of glamour, as the overlook forsaken land banks and an increasingly distressed market.
Meanwhile, the London property market is booming. Since mid-2009 London property prices have been consistently rising, and now, as all the UK joins in a rental market and buy to let boom, London once again booms bigger and brighter than anywhere else.
The temporary respite in the UK housing market began in March 2009, and by March 2010 house prices had grown by 8.1% year on year, in Kensington and Chelsea, arguably the prime borough of London prices grew by 19.4% during the same period according to Land Registry data. The market has since turned again, and in the England and Wales as a whole prices fell 1.7% in the year ending March 2011, meanwhile in Kensington and Chelsea prices continue to grow, and were up 4.8% in the year ending March.
Foreign investors have not only been attracted by this growth and resistance to the volatility presented by prime properties in London, but have also played their part in the boom. Foreign demand for London property has been growing since 2009, and is incredibly strong in 2011. Demand from India and wider Asia is currently thought to be the fastest growing, having been slow over the past 2 years when Asian markets were booming.