Currency Exchange Rates Help Middle East Investors Save Millions on Luxury London Properties

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(DUBAI, UAE) -- It's no secret that foreign buyers are investing in London real estate. Now some new numbers from Dubai based international real estate services firm Asteco show greater growth in Q2 over Q1 this year at the top end of the London residential market because most Middle East investors hold dollars while the pound and euro have been falling.

International buyers have accounted for 63 percent of all prime central London purchases of $7.5 million and over since 2006.  Over the past year, these high net worth individuals have rebuilt their wealth by around 20 percent. Comparing exchange rates year-on-year, investors from the GCC will save $1.5 million on a property priced at $9 million.

"With the continued strength of the dollar and stable real estate prices in the capital, now is the ideal time for many regional investors to purchase a second home in London," said Richard Angel, head of international investment at Asteco. "With the majority of Savills UK web visitors living within the GCC, we are expecting a steady flow of enquiries from prospective investors throughout the region over next few months," added Angel.

The latest analysis from  Savills - Asteco's UK partner  -  found super prime properties, which average around $7.5 million, rose by 1.3 percent and are now just 5.5 percent from peak, suggesting a resilience that is based on limited stock and international buyers. Ultra prime properties, which average $22.5 million and above, grew by 1.5 percent, but values remain 15.8 percent below their peak.

Yolande Barnes, head of residential research at Savills, said, "the fundamentals of the prime central London market, remain sound provided London retains its status as a major world city and financial centre."
 
Overall, prime central London residential property price growth has slowed almost to zero over the past three months, after four consecutive quarters of growth, so the affluent can still find plenty of bargains. 

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