London consolidates its position as luxury property capital of the world
LONDON, England - According to analysis conducted by LuxuryEstate.com, London is continuing to consolidate its position as the property capital of the world. Even during a global economic downturn the average price of luxury properties has increased by 35% since 2009, caused by the growing international demand and the scarcity of prime housing stock.
About 60% of luxury property transactions in London are done with foreign clientele. From the figures collated by Luxury Estate, the highest percentage of London luxury property sales are from Russia and Middle Eastern buyers but there is also significant activity from European buyers, with a significant number of buyers from France and Italy.
The minimum price for luxury property in London, defined as being five times the price of an equivalent property in the same area, is £27,000/sqm - twice the price of Paris (£13,000/sqm) and New York (£14,000/sqm). In the 'golden triangle' of Knightsbridge, Chelsea and South Kensington this rises to an average of £42,750/sq m. This is nearly three times more than the upper average prices in New York (£15,000/sqm) and considerably more than Paris (£18,000/sqm) in the first quarter of 2013.
Silvio Pagliani, President of LuxuryEstate.com, said: "Since the start of the economic crisis in Europe and across the world, investment in luxury London real estate has been considered a better option than the stock market and a 'safe haven' in which to invest. This is demonstrated by countries such as France and Italy, who have been badly hit with recessions, buying more and more property in London."