The area around Regent’s Park remains popular in London. Image credit: Knight Frank
Real estate investors are taking advantage of a weakened pound, with buyers from the United States spending on average more than $9 billion in the prime central London residential market. According to Knight Frank, U.S. buyers make up 6 percent of foreign purchasers in prime central London, second only to Chinese investors in 2019. Over the last decade, the U.S. has averaged as the fifth largest source of foreign buyers in London. “U.S. buyers have been long-term players in the prime London residential market,” said Liam Bailey, global head of research at Knight Frank, London. “While the weak pound has undoubtedly aided the recent surge in demand from dollar based purchasers, the real driver has been the strength of the London economy over the past two years. “Not only has Brexit failed to have any impact, but over this period London has taken the dominant share of U.S. corporate investment in Europe, leading to a significant uptick in demand for prime property from relocating U.S. employees, entrepreneurs and business owners – especially from the tech sector,” he said. Foreign buyers Since 2010, high-net-worth individuals from the U.S have spent an average of $6.3 million, or 5 million pounds at current exchange, on real estate purchases in London. Historically, buyers from Saudi Arabia have spent the most, an average of $16.8 million, or 13.4 million pounds. In 2019, U.S. buyers are spending an average of $9.3 billion, or 7.3 million pounds. They also account for 6 percent of the market share of London real estate sales, up from 3.3 percent in 2018. London real estate investments from the U.S. have rebounded since 2014, when American investors only had a 2.4 percent share of prime central London sales. The most desirable neighborhoods among Americans include Marylebone, Mayfair and Chelsea.
London's real estate market is showing signs of promise. Image credit: Knight Frank