Fleeing financial turmoil in emerging economies
Wealthy people are flocking to invest in British real estate
“Amlak from Riyadh
Political and financial turmoil in some of the world's major emerging economies has sparked a new wave of wealthy migration to London's bustling real estate market, data released yesterday by a leading real estate consultancy showed.
According to Reuters. According to Reuters, Knight Frank, which specializes in the high-end real estate market, said it has recorded a significant increase in online inquiries about British homes from crisis countries such as Argentina, Ukraine and Turkey.
According to Reuters, Knight Frank, which specializes in the high-end real estate market, said it has recorded a significant increase in online inquiries about British homes from crisis countries such as Argentina, Ukraine and Turkey. Tom Bell, a member of Knight Frank's residential real estate research team, explained that a new wave of investment is likely to be heading to the prime central London market.
This comes despite the fact that there has been a significant increase in enquiries for British homes online from countries in crisis such as Argentina, Ukraine and Turkey.
This comes despite the fact that London property prices have increased significantly as foreign buyers flock to the capital's mansions, driven by the Eurozone debt crisis and instability in the Arab Spring countries, offset by Britain's political stability and reasonable property taxes.
The firm added. The company added that interest from wealthy Brazilians more than doubled over the 12 months to the end of January, noting that an increase in online inquiries turns into an increase in actual sales within three to six months, with the bulk of these inquiries relating to homes in London.
The largest increase in online inquiries came from London. The largest increase in inquiries came from Brazil, up 115 percent over the 12 months to the end of last month from a year earlier. Brazil is one of the five economies considered most affected by the US central bank's actions to withdraw monetary stimulus, given its large current account deficit and reliance on capital inflows from abroad.”
Brazil is one of the five economies most affected by the US central bank's withdrawal of monetary stimulus, given its large current account deficit and reliance on capital inflows from abroad. <Argentina and Ukraine came in second, with the former facing a currency crisis and the latter experiencing a wave of political unrest. Inquiries from both countries increased 67 percent, interest from Indonesia and Turkey increased 10 percent, both countries have been experiencing capital flight and currency depreciation for several weeks, while inquiries from South Africa increased 9 percent. Data from Halifax Mortgage showed that British house prices recorded the biggest monthly increase in three months in January and that the annual rate of house price inflation remains near a six-year high.
Data from Halifax showed that British house prices increased by 1.1 percent in January. <House prices rose 1.1 percent last month after falling 0.5 percent in the previous month in line with economists“ expectations, the biggest increase since October. <Home prices in the three months through January jumped 7.3 percent from a year ago, a slightly slower rate than December's 7.5 percent increase but still near the six-year high of 7.7 percent recorded in November.
