Indians stake claim on prime properties in London

DNA Special

Indians feel at home in London thanks to the large Indian community. Most buy properties worth between £5,00,000 to £1 million

LONDON: London is fast becoming a second home to rich Indians. It is no longer a metaphor but literally true - more and more Indians are buying homes in the British capital.

Last year 60 per cent of the £5 million-plus properties sold in Central London were bought by foreigners. While many of these were Russians and Americans, Indians were giving them a run for their money too. "My phone is ringing off the hook with Indians eager to buy property in London," said Jaideep Singh, head of the India desk at Knight Frank, real estate agents that specialise in properties in Central London.

"Two years ago there were hardly any Indians wanting to buy in London, except for those already living here. In the last year and half we have seen a phenomenal rise in interest," Singh told DNA.

Knight Frank's India desk is ten years old, but till now it had dealt mostly with resident NRIs. The interest from Indians has even forced Savill's estate agents, Knight Frank's main competitors, to set up an India desk and hold a roadshow of luxury properties in India.

"They want as prime as it gets," said Sheetell Chantel Halai, head of Savill's India desk. The most popular areas for purchase by Indians are the most exclusive areas of the capital like Belgravia, Mayfair, Knightsbridge, Oxford Street, Marble Arch, St. John's Wood and Kensington. There are also those who wish to buy in Ealing and Southall to be near friends and relatives who live permanently in West London.

"It's not just the billionaire boy's club but parents, businessmen and people looking for a good investment," said Chantel Halai.

Apart from a London home becoming a status symbol among the Indian rich, it also makes excellent business sense. "Once Indians have a property in India, the next place they look to buy is London. Last year the property market here saw a rise of 28 per cent," said Singh. According to Singh, Indians feel at home in London thanks to the large Indian community and the multi-cultural society, and more importantly the British pound is strong and they know their money is safe.

Most buy properties between £500,000 to £1 million, with a few looking in the £5 million to £30 million but these tend to be big business houses. "They prefer flats - 2 to 3 bedrooms - as they can lock them up and go back to India without any hassle," said Singh. He also advises many of his clients to invest in new constructions. "They only pay 10 per cent now and after two years when the £5,00,000 property they bought is ready, the value will already have shot up to around £8,00,000," advised Singh.