Exploring London’s Real Estate Boom: Why India’s Wealthy Are Investing in the British Capital

Exploring London's Real Estate Boom: Why India's Wealthy Are Investing in the British Capital

London: The Premier Destination for Indian Property Investors

London has long been a hub for real estate deals. For decades, rich investors from India have picked London as a safe bet. Many high net worth people and families now use the city for their property plans. Wealthy Indians, from industrial leaders to Bollywood stars, choose the British capital for its strong property market. More recently, families have joined the trend as they invest for their children who study in the city.

A Flourishing Indian Diaspora in London

“Indians make up one of the largest groups of property owners in London,” said Akash Puri, Director – International, India Sotheby’s International Realty. Some Indian families have lived in the UK for many years. Others include those who own holiday homes abroad or buy houses as a steady home for their children. A one-bedroom flat costs around ₹3.2 crore. A three-bedroom home goes for over ₹5 crore. Areas such as Mayfair, Marylebone, and Oxford Circus remain popular with Indian investors.

Key Factors Driving Investment

London gives clear business chances and steady growth in value. The city sets smart tax rules and gives buyers extra money choices. Its safe lifestyle and good residency plans add appeal. “It makes more sense to buy a property than pay high rents for a long time. This gives our kids a safer future,” said a couple who bought a home on the outskirts of London. Even with Brexit worries, property prices in London have kept growing. Vivek Rathi, head of property consultancy at Knight Frank India, noted that the market stays strong despite past gloomy predictions. London is known as an academic hub that welcomes new residents, which adds to its charm.

Demand-Supply Dynamics and Rental Yields

London’s market shows a steady demand with a shortfall of about 35% in supply. This gap helps keep the prices firm, even when the economy stumbles. “This demand and supply gap keeps the market appealing to buyers,” Puri said. The UK government’s stamp duty holiday and fair prices have motivated many high net worth individuals to buy property here. Owning a home in a famous city like London fits well with the social status goals of India’s ultra-rich.

Growth of UHNIs in India

A Knight Frank report shows that the number of ultra-high net worth individuals in India grew by 6.1% in 2023. This rate is higher than the global average of 4.2%. These individuals have a net worth that goes beyond $30 million. Around 32% of the wealth of India’s ultra-rich is in houses, and 14% is parked outside India. In a survey, 47% of India’s UHNIs said they plan to invest in UK real estate, with many also eyeing opportunities in the UAE and the US.

Indian Developers Entering the London Market

The good traits of the UK market have led many Indian builders to look at London. Mumbai-based Lodha Group made its mark in London by starting projects like Lincoln Square in 2016 and No.1 Grosvenor Square in 2017. A new platform called Property Share has entered the warehousing scene in the UK. It has invested $200 crore and plans more projects, thanks to the market’s many perks.

The Prestige of Owning Property in London

Buying premium property in London is a sign of status among India’s rich. Top figures such as Mukesh Ambani and Adar Poonawalla show this trend. Poonawalla made news when he bought one of London’s priciest houses for ₹1,446 crore. Ambani owns the Stoke Park Hotel, a 900-year-old property with 49 rooms, large gardens, and a golf course. He bought it for £57 million (about ₹529 crore) in 2020. ## Conclusion

London meets the needs of wealthy Indian investors with smart deals, a safe lifestyle, and growth in value. As more rich Indians make property decisions here, London stands strong as a preferred global market. The mix of high status and sound financial plans keeps the city in the spotlight. For those considering homes for many people, London shows strong demand and promising growth.

Sources

Invest wisely, and you may find London to be your next valuable property investment.

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