With the Guardian reporting that Mayfair property prices are set to break the £5,000 per square foot record, Richard Carr believes that the foreign investment that has helped break the previous high, should be welcomed.
The London property market shouldn’t fear foreign investors
Richard Carr is a residential and commercial planning expert with over 30 years of experience in the sector. He has achieved planning for a number of high profile buildings in the South of England and has successfully helped developers maximise profits on their investments.
There are fears that wealthy foreign buyers are fuelling a housing bubble in the Capital, following the news that 18 apartments at Clarges, Mayfair in Piccadilly having sold for a total of £210m. Richard, however, believes that foreign investment of this kind should be welcomed with open arms, with the London and seaside economies benefiting.
London flats sold at record breaking prices
British Land, one of Britain’s biggest developers, said it sold 18 of the 34 flats in the “super-prime” Clarges, Mayfair development at an average of £11.6m each. Four of the flats sold for more than the previous Mayfair record price of £5,000 per sq ft. One penthouse is understood to have broken through this barrier by a substantial margin.
One in five homes sold in London’s most exclusive boroughs were to wealthy overseas buyers
News of the record sale prices comes days after figures were published showing that one in five homes sold last year in London’s most exclusive boroughs – Westminster, Kensington, Chelsea and in the City of London – were bought by wealthy overseas buyers.
Tim Roberts, Head of Offices and Residential at British Land, confirmed that: “Interestingly, over half of the apartments at Clarges, Mayfair have been sold to British or British-based buyers.”
Foreign investors should be welcomed into the UK
In Richard Carr’s opinion, foreign investors aren’t fuelling a bubble in the London property market. The majority are buying with cash in the centre of the West End and then spending huge amounts of money in the local economy. UK property owners in London are also benefiting and cashing in on their properties with many retiring and downsizing to places such as Somerset, Cornwall and Dorset.