London ‘remains attractive’ for international buyers

London continues to exert significant pull among international buyers as a place to live, learn and invest in, research suggests.

The attractiveness of the capital may have been hit in recent years by Brexit, higher taxes and extra Stamp Duty charges but a new report, What the World Thinks of London, suggests it remains attractive.

The analysis, based on research of 1,000 people, found that nearly two-thirds – at 64% – of international respondents from New York, Singapore, Dubai, Hong Kong and Paris would live in London if the opportunity arose.

Almost half – at 47% – of respondents believe London offers the best prospects for skilled professionals seeking to advance and build their careers.

The findings suggest that London’s long-term strengths and reputation are increasingly valued. Despite some negativity by politicians and commentators, perceptions of the capital are strong and improving.

London is offering an excellent opportunity to buy at a time when it is priced well below other global city destinations.

The research found that 70% of respondents said they associate London with stability, a roughly similar percentage to those that see London offering strong career opportunities, global tech sector leadership and diversity.

Respondents most strongly associate London with culture and history – at 83% -, world-class education  – at 79%, and a high-quality lifestyle – at 75% -, alongside stability – at 70% -, diversity, and global financial leadership. A total of 57% also associate London with safety.

Price corrections

London Square, which conducted the research, said the capital has also emerged as one of the most competitively priced major global cities for residential property.

A typical two-bed apartment in London is 23% cheaper than New York and 60% below Singapore, one of the world’s most expensive markets, the property company says.

This significant pricing gap follows successive years of price correction, and a period of sterling weakness that has increased London’s relative affordability for international purchasers. When measured in US dollars, long-term price growth appears markedly lower, underlining the currency-driven value advantage.

Transaction costs for overseas buyers are also considerably lower than in markets such as Hong Kong and Singapore, where foreign purchaser levies have risen sharply in recent years.

Adam Lawrence, Chief Executive of London Square, says: “These findings paint a clear and positive picture of London’s global reputation, showing that it is layered, resilient and internationally competitive.

“While a negative narrative from some commentators has brought focus on the capital’s challenges, international audiences continue to recognise London’s fundamentals as world-leading – offering outstanding opportunity, education, culture and stability.

Attractive option

“In an increasingly unpredictable world, capital and ambition are increasingly mobile, this research confirms that London remains one of the few cities with beacons of excellence and the track record to be attractive as a long-term option for international audiences to move here and flourish in London.”

Naomi Minegishi, International Sales Director, London Square, adds: “The research underpins the sentiment we are seeing from international buyers who continue to want to live, work and invest in property in the capital – and regard it as a safe haven.

“London is offering an excellent opportunity to buy at a time when it is priced well below other global city destinations,  as a result of currency fluctuations and price corrections in a city valued for its stability and relative safety.”