In the past few years, London has become even more of a hotspot for overseas investors. Since the UK announced its planned departure from the European Union, we have seen a surge in overseas investors on a mission to get their hands on expensive properties in London, while on the other hand, many domestic buyers have shown less interest in the capital, with some even withdrawing before exchange. As the pound fell as a result of Brexit, foreign investors have been jumping at the opportunity to invest in the capital’s real estate market ever since. So, why exactly is London a property hotspot for overseas investors?
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The trend of traditional investment opportunities is not set to go anywhere for the foreseeable future at least, and for many overseas investors, good areas such as Ealing are considered to be as profitable as always. In addition, many overseas purchases like to own a building that has some history attached to it, which is certainly the case with many properties in the capital city.
In 2016, the fall of the pound against the Euro and the U.S. dollar, coupled with a reduction in the value of some of London’s most expensive properties, allowed buyers to purchase homes at around 50% fewer rates compared to just a few years before. In June 2019, surveys showed that, today, London is cheaper for ex-pats to live in compared to earlier – a change that is largely thanks to the fluctuation of currency and the strength of the UK economy despite Brexit. London now has a dominant share of U.S. corporate investment in European cities, which has led to a huge increase in demand for prime London property for relocating U.S entrepreneurs, business owners and employees – particularly those working in the technology sector.
There are several properties located in London that are among some of the most expensive homes in the world. While many of these have been snapped up by overseas investors, some are owned by anonymous homeowners or even celebrities. Most of these homes are in the prestigious areas of the capital.
While overseas investors have certainly snapped up a lot of London’s most expensive real estate, the same cannot be said for the most expensive home in Britain, located in Mayfair. It was created by businessman John Caudwell, and at a staggering value of £250m, it’s a huge home that’s over double the size of the Royal Albert Hall.
Phones 4u founder, and famous for being the highest taxpayer in the UK, John Caudwell created the property by turning two mega-mansions in Mayfair into a one even bigger home. He bought Mayfair House in 2012 for £87m and embarked on a huge renovation project a few years later. The two houses have been knocked into one, and are set in a Portland stone building. There are eight floors, fifteen bedrooms, and a 120-capacity ballroom on the premises. There’s a ‘car stacker’ that can take eight cars straight from the street to storage at the simple press of a button, and the indoor pool has a cool volcanic lava installation. The Thai-themed dining room has a river flowing through its centre and 20,000 sheets of gold leaf were used throughout the luxurious interiors. Perhaps unsurprisingly, the renovation ran a staggering £55m over budget. The property is used primarily for the tycoon’s charitable foundation, Caudwell Children, which supports children with disabilities and their families.
Although Mayfair House belongs to business tycoon John Caudwell, he does not live in the property. Instead, it is protected around-the-clock by a security team and used to throw charity balls, hold meetings, and throw gala evenings to raise money for his charitable foundation Caudwell Children. Caudwell told The Times that he ‘doesn’t need a house anything like that size’.
While Mayfair House might have been valued as the most expensive home in the UK, another mansion purchased this year by a Chinese property tycoon comes in at a close second. Cheung Chung-kiu is the founder and chairman of property group CC Land, the company owner of the £1.15bn Cheesegrater skyscraper. Chung-kiu agreed to purchase a mega-mansion for a record $262m, which is around £205-£210m. At the time of purchase, the tycoon was considering whether to use the property as a single home for private client use or to convert it into a prestigious multi-unit apartment scheme in the city, which would create a luxury residential scheme valued at an estimated whopping £700m. The 62,000 square metre property is located on Rutland Gate, with views over Hyde Park. It has seven stories and was built in the 1980s. Previously, it was owned by Prince Sultan bin Abdulaziz Al Saud, the late former Crown Prince of Saudi Arabia. It has also been the home of the late Rafic Hariri, a billionaire and former prime minister of Lebanon.
Since the national COVID-19 lockdown this year, a huge Grade II listed townhouse located in Mayfair, London, has been listed at the highest asking price in 2020 at a huge £54.5m. The home has six stories and spans a massive 14,500 square feet and was previously rented out for an astounding £27,500 per week. It was bought for just £1.7m in 2008 and is now selling for a staggering 32 times higher. This historic property was built in 1732, before being refurbished by Chelsea-born architect Ralph Knott in 1908. The home is not only in an enviable central London location, but it also has a massive twelve bedrooms, nine bathrooms, and a 73ft long indoor swimming pool which has a fitness studio, wellness centre, sauna, jacuzzi, and a private cinema.
The most expensive rental properties are found in the most prestigious boroughs of London including Westminster, where a five-bed penthouse has the priciest rental rate at a staggering £260,000 per month. Kensington and Chelsea, Camden, and Barnet are also home to some of the costliest rentals in London with prices exceeding the £100k per month mark.
Aside from the £260k per month penthouse in Westminster, you can find a seven-bed penthouse in Kensington and Chelsea at a staggering £174k per month. Camden offers an eight-bed detached house with a private swimming pool for £140,000 per month, or you can head to Barnet for a four-bed converted chapel in seven acres of land for £104,000 per month.
While overseas property investors have been more interested that ever in the capital in recent months, there’s still a lot of opportunity for domestic buyers. Get in touch to find out how we can help you invest in London property.
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