Someone once said that London is both London in the UK and London in the world!
Think about it carefully, it is actually not unreasonable.
As a pioneer of the industrial revolution , as one of the world's top financial centers and a famous cultural, entertainment and education capital, today London has long gathered people from all over the world.
Here, people speak more than 300 different languages, with nearly 37% of the population born overseas, and London has also become one of the most diverse and inclusive cities in the world.
As a large number of overseas talents are attracted to this point, in recent years, more and more overseas buyers have come to London to buy houses, and this group has even become the main force in the London luxury housing market.
Some media roughly predict that in the prime location market in central London, basically half of the houses will be sold to overseas buyers.
Among them, buyers in China, Russia, India, the United States and other places are the first to be affected, and the amount of real estate investment has repeatedly refreshed the media's awareness.
However, since the outbreak of the new crown epidemic in 2020, the UK has encountered many lockdowns, which seems to have cast a shadow on the London luxury housing market.
Some people believe that due to "over-reliance on" overseas buyers, the outbreak of the epidemic has caused a heavy blow to the luxury housing market...
However, recently, many institutions pointed out in their reports that during the epidemic, overseas buyers' enthusiasm for investment remained unabated. Taking advantage of the weak pound and other advantages, there are quite a lot of properties that have been bought in London in the past year.
[ London luxury housing market hits another high ]
Just recently, LonRes released the latest research report and found that the performance of the prime location market in central London is very impressive!
According to statistics, in 2021, buyers spent a total of £11.6 billion to rush to buy real estate in central London's prime location, with the highest transaction volume since record in 2000.
Among them, the sales of apartments and villas each account for about half of each.
data also shows that compared with the average annual sales between 2015 and 2019, apartment sales increased by 16% in 2021, villa sales increased by 57%, and overall sales increased by 26%.
LonRes believes that from the data, the explosion of the luxury housing market in 4 quarter has a lot to do with the opening of international travel and the return of overseas buyers.
It is worth noting that in the fourth quarter of last year, the luxury housing market worth more than 5 million pounds (about 45 million yuan) was the busiest. sales not only increased by 15% from the same period in 2020, but also 57% higher than the average in the fourth quarter of the first five years of the epidemic.
LonRes believes that from the data, the explosion of the luxury housing market in 4 quarter has a lot to do with the opening of international travel and the return of overseas buyers.
Coincidentally, the latest research of Savills also shows that was driven by the return of overseas buyers. In the fourth quarter of 2021, the transaction volume of luxury homes in London hit a new high, with sales of luxury homes worth more than 5 million pounds reaching 163 units.
not only increased by 37% compared with the previous quarter, but also the strongest fourth quarter performance since 2013.
was driven by the fourth quarter, and a total of 522 luxury homes worth more than £5 million were sold in London throughout 2021.
To buy these luxury homes, buyers spent nearly £6 billion in total, spending more than £2 billion in the fourth quarter alone, the strongest quarterly performance since record in 2006.
Meanwhile, in the fourth quarter of 2021, the super luxury home market worth more than £10 million also ushered in its strongest quarterly performance ever, with a total of 62 units sold, far higher than the all-time high of 50 units in 2014.
In addition, the market for newly built luxury homes of also saw a significant increase at the end of last year. In the last three months of 2021, 30 newly built luxury homes in London had sold more than 5 million pounds, with a total value of up to 558 million pounds.
This not only has the highest single-quarter sales volume, but also breaks the record of total sales of newly built houses.
After these data were released, Savills analyzed that as the UK gradually relaxed restrictions on international travel in November, the number of overseas buyers returning to London increased day by day, and the demand for real estate has also increased. In addition, domestic buyers' previous pursuit of larger living space has jointly promoted the sales of London's luxury home market.
So, where do these wealthy buyers tend to buy houses?
In response to this, Savills said that London's traditional hot spots continue to dominate the entire market . More than half of the luxury home deals worth over £5 million are in traditional prime central London locations such as Kensington, Chelsea , Belgrade, Notting Hill and Knightsbridge .
This means that even if there is an impact on the epidemic, traditional hot spots have not lost their attractiveness.
But Savills pointed out that throughout the year, the impact of the epidemic cannot be underestimated. As buyers want to obtain larger living space and more outdoor space, the investment map of London luxury homes is also gradually expanding .
data shows that sales of properties worth more than £5 million in southwest London increased by 84% in 2021 compared to 2020.
Not only that, buyers are also getting younger. According to surveys, only 40% of the wealthy people who buy houses in London start from scratch, while the rest benefit from family or inherited wealth.
Not long ago, Beauchamp also published a very interesting survey.
The agency pointed out that in 2021, a total of 49 properties sold in London, , costing more than £15 million, more than double the 17 units in 2020.
Moreover, in this higher price range, Chinese and Russian buyers occupy the main part.
Not only that, buyers are also getting younger. According to surveys, only 40% of the wealthy people who buy houses in London start from scratch, while the rest benefit from family or inherited wealth.
Beauchamp said that the new generation of super rich buyers, many of them are in their 20s or early 30s, want luxury goods that are worth the money.
Of course, while expressing the purchasing power of the rich, many people may also care. Why do overseas buyers think that London real estate is worth the money?
【 London luxury houses are considered to be worth the money 】
Although London luxury houses are indeed expensive, , for people with investment experience, buying London luxury houses is currently considered "very good deal" and worth the money!
In terms of taxation, London also has certain advantages. The tax cost of during the property holding period is relatively low in .
Indeed, pound exchange rate is still at a low level from a long historical period.
Take US dollars as an example. In early 2015, it took US$1.59 million to exchange for £1 million. By early 2021, it will only cost US$1.37 million to exchange for £1 million.
In this regard, Martin Heale, director of Schroder Wealth Management's US company, said: "The favorable exchange rate will continue to increase the attractiveness of London as a European cultural and economic center. It is still a good window for overseas buyers."
Not only that, experts pointed out that there is another major favorable factor during the epidemic, is that some sellers are eager to take off, so buyers can get a bigger discount.
Some media have reported that just after the epidemic lockdown ended, a Russian billionaire bought a five-bedroom villa near central London for £15.45 million after only remote video viewing.
Although this villa is very expensive, it is about 1 million pounds lower than the previous listing price due to the seller's rush to sell.
Experts said that most people who hold luxury houses operate their own businesses or own businesses, and often need sufficient cash flow . Therefore, some sellers may want to sell the property as soon as possible, so they are willing to make greater concessions in the transaction.
Of course, in addition to the above two favorable factors, what really attracts overseas buyers is the charm of the city of London itself. Purchasing real estate is just a way for the rich to enjoy London's high-quality resources.
London's comprehensive strength can be said to be reflected in all aspects...
In terms of education, London is one of the most developed cities in the world's education system and the region with the most outstanding primary and secondary schools in the UK.
These schools not only have outstanding grades, but also have very advanced concepts. They can maximize the potential of children and provide children with a diverse "track".
Moreover, London also has some of the world's best schools and universities, and has more than 40 higher education institutions, ranking among the top in the world.
According to the latest annual world university rankings released by the magazine " Times Higher Education ", 4 of the top 50 British schools in the world are located in London, the capital, namely Imperial College London, University College London UCL, London School of Political Science and Economics , and London King's College London .
Due to the many prestigious schools and the rich in internship employment opportunities, London has been selected as the world's best study abroad city by QS for many years.
Therefore, many wealthy people are also willing to purchase real estate in London to help their children's education.
Some media have pointed out in the report that many French and Spanish families plan to spend up to £15 million to purchase penthouses in London to ensure children can enter the top public schools .
In terms of economy, London is a world-renowned economic and financial center. It not only controls 45% of the world's foreign exchange transactions, but also the first choice for large companies to set up locations. 75% of the Fortune 500 companies have companies or offices in London.
. In the latest released Global Financial Center Index (GFCI), London is still one of the top two financial centers in the world.
Schroder Consulting believes that although the pandemic has had an impact on some industries, it has also created a lot of wealth. The performance of industries such as technology, private equity and health care have been excellent and have become new economic growth points.
At present, the UK economy has caught up with the pre-epidemic level. In November, the annual growth rate of GDPhtml was 0.9%, 0.7% higher than the level in February 2020.
In terms of taxation, London also has certain advantages, and the tax cost during the property holding period is relatively low.
KnightFrank data shows that compared with other large cities in the world, property taxes such as municipal taxes that need to be paid for in London properties are relatively low, especially for properties with higher prices, the more obvious the gap.
Take a house worth £2 million as an example. Assuming that based on the highest municipal tax level BandH, the average cost of holding a property in London for 10 years is £30,874, which is 1/10 of Miami , and is also lower than New York, Hong Kong, Singapore and other places.
Regarding taxation, many real estate experts also believe that overseas buyers are prepared for taxes before buying a house in London, because there are taxes in various countries around the world, and the tax cost in London is actually not high.
is also precisely because of its strong comprehensive strength that since this year, many institutions including ResonanceConsultancy, Boston Consulting, and Schroders have been able to rated London as the world's best city, and have recognized London's strength. For specific reference links: Take a look at it, London has won several firsts this year!
For the rich, these soft powers not only mean that London is very livable, but its real estate also has strong ability to resist risks and add value.
PwC once pointed out in a study that London is the best real estate investment destination in Europe, and is more popular among investors than big cities such as Paris and Berlin . The
report also pointed out that London is leading because it provides more value for money services. Investors say London real estate yields about a percentage point higher than other cities in the continent.
ending tips for the real estate circle:
According to the data, London's high-end real estate market attracted more capital inflows last year than before. This reflects that London property capacity provides investors with a safe haven during turbulent times such as the epidemic.
experts also generally believe that due to people's current concerns about inflation , economic trends and other factors, many investors want to re-improve their investment portfolios, so they have also turned their attention to the London real estate market.
Not only that, international investors can also take advantage of the weak pound to get more discounts.
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