President Trump may be long gone but home buyers from the USA have shot up to second place in London’s international buyer rankings, spending an average £7.3m ($9.3m) during 2019 on a property, according to Knight Frank.
Analysis of purchaser data going back a decade in the super prime property central London residential market confirms that on average US buyers comprised the fifth largest source of international demand. Their market share declined to a low of seventh place in 2014.
However, more recently a combination of rising global investment interest from high-net-worth US buyers and the weak pound following the Brexit vote have propelled US buyers up the rankings – hitting fourth place in 2018 and second place in 2019 to date, behind Chinese buyers.
As their share of the prime London market has surged, so too has their spending power, from an average £5m ($6.3m) spend over the past decade to £7.3m ($9.3m) in 2019 so far – making the US buyer the fifth highest major spender behind Russians (£9.1m), Germans (£9.6m), Turkish (£10.8m) and those from Saudi Arabia (£13.4m).
Liam Bailey, Global Head of Research at Knight Frank said, “US buyers have been long-term players in the super prime London residential market. 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 US corporate investment in Europe – leading to a significant uptick in demand for prime property from relocating US employees, entrepreneurs and business owners – especially from the tech sector.”
Neighbourhoods in demand by US buyers are led by: –
1: Marylebone (south of Regent’s Park);
4: Islington and
CIT, the developers behind Regent’s Crescent, London’s only Grade 1 listed new build overlooking Regent’s Park, are witnessing first-hand the uptick in demand from US buyers. Upon completion in the second quarter of 2020, Regent’s Crescent will offer 67 Grade I listed apartments and nine Garden Villas, with prices from £2.9m ($3.6m) through Knight Frank.
Super prime property list:
United States: 6.0%
Hong Kong: 4.0%
Saudi Arabia: 2.0%