According to Knight Frank London analysts, Russians have become a significant force in the London real estate market. In 2005, they accounted for over 17 % of the total purchasers of residential property worth £4 mln and above.
15 December 2005
According to a recently published report, Russian buyers accounted for 15 % of the market in 2004. In 2005, Russians made every tenth transaction of properties in the average price range from £2 mln and above. Analysts noted that this trend has prevailed throughout the last five years. Currently Russians appear the key foreign buyers of premium property in London, and are gradually outriding the leading buyers from the Middle East countries. The report states that Russian buyers favor Kensington and Chelsea, the most prestigious districts of the Central London. Owners and top managers of companies operating in banking and primary industries are the most active buyers. "There are several reasons why Russians buy property in London. They either buy property for their children, who are planning or already study in England, or choose London as a second home," – says Ekaterina Thain, Head of Residential Department, Knight Frank Russia. Knight Frank UK experts add that Russians buy property in London for investment purposes as well. For the period from September 2004 – September 2005, the prices of property in the Central London area in the over £4 mln price segment grew by 5.8%. For the same period, a 3.1% price increase was reported for residential property worth £2 - £3 mln, while prices of property in the £3 -£4 mln range increased by 5.5%. Lime Baley, Residential Property Market Research (Knight Frank UK Office) believes that the price growth is triggered by the increased demand for premium property, "New development offerings in the Central London area are limited and substantially behind the nearly unlimited demand, which is generated by the large percentage of the UK’s non-resident buyers. British citizens account for merely 60% of total buyers, while 40% are foreigners."
