select
|

SA wealthy buying more property in London than the Swiss, Singaporeans and Saudi’s

A new report into foreign buyers of London property reveals that wealthy South Africans are the 11th most active nationality in the £1m+ property segment.

The report released by global property consultancy Knight Frank LLP, shows that South African buyers outperformed buyers from far wealthier countries such as Germany, Singapore, Saudi Arabia, Switzerland and Canada over the past 3 years.

“This news comes as little surprise” says Mike Smuts, managing director of Smuts & Taylor Ltd. His firm, with offices in London and Cape Town, specializes in assisting wealthy South African investors enter the London property market.

“Wealthy South Africans are highly sensible with their investments and are looking at London property as a “Safe-haven” amidst the weak domestic economic outlook and continuing uncertainty about the timing of the global economic recovery. London bricks and mortar is fast becoming the new Swiss Bank account”

Surprising enough, Mike says, the vast majority of his wealthy clients has no intention to formally immigrate but is rather making use of the greatly relaxed foreign exchange regulations to migrate a portion of their wealth to a stable economy with a strong currency, such as the UK.

Both property prices and rental values have risen sharply in recent years leading to a healthy return – prime central London house prices have risen 49% since March 2009 and are now 14% higher than their previous market peak of March 2008.

London’s population growth is the fastest in the UK, yet new houses are being constructed at a far slower rate. The government estimates a rise in household numbers in London of between 34,000 and 38,000 annually up to 2028. But based on development levels over the last decade, a realistic estimate of the number of homes which will actually be delivered each year is 21,000.

Says Smuts: “For some time now, the Prime Central London residential market has seemingly defied the laws of gravity. Whilst the rest of the UK, Europe and the United States are generally showing, at best, weak economic growth, the Central London market is booming and savvy South African investors have definitely benefited alongside their more publicized counterparts from Russia, India, Italy, the US and France.”




  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 18 Jan 2018
      The Southern Suburbs make up some of the most popular residential areas in Cape Town, comprising charming groups of suburbs which lie to the south-east of the slopes of Table Mountain. It is seen as the city's most expensive residential neighbourhoods with a choice of various private schools, upmarket eateries, wine estates, beautiful homes and trendy apartments.
    • 18 Jan 2018
      New year, new goals! If you’ve resolved to purchase your first property in 2018, then this 6-step guide from the Rawson Property Group is a must-read. It will help you navigate and simplify what is often be seen as a confusing process of buying your first home – right from the house-hunt to the house-warming.
    • 17 Jan 2018
      While the current property market may still favour buyers, it doesn’t mean that they shouldn’t be well prepared before putting in an offer to purchase.
    • 17 Jan 2018
      Lightstone lists Blair Atholl as the most expensive suburb with an average house price of R11.2 million, followed by Westcliff (R10.5 million), Dunkeld (R9.3 million), Sandhurst (R9.1 million) and Inanda (R7.2 million).
    • 17 Jan 2018
      As it currently stands, there are four main ways in which a home can be bought in South Africa, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, who adds that deciding in which legal entity to purchase the property is not a decision that should be entered into lightly, as each has its pros and cons.
    • 16 Jan 2018
      The start of the new year is symbolic of new beginnings. A good time to take stock of one’s possessions as well as how necessary they actually are. However, seeing as the process may appear daunting – a plan goes a long way.
    • 16 Jan 2018
      The Western Cape is still in the throes of a severe drought and many households have to adjust the way they use and save water. It is a little more complicated in sectional title schemes, however, as it is not that easy to implement grey water systems for multiple users and it is also difficult to monitor water usage accurately if there are no separate water meters
    • 15 Jan 2018
      In ideal rental situations, when a lease is signed the tenant will stay for the full duration of his lease without any complications and the landlord will uphold his obligations, creating a win-win situation for tenant and landlord.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK