Indian buyers find London luxury homes attractive and cheaper by over 14%

0
214
Want create site? Find Free WordPress Themes and plugins.

Luxury homes bought by Indians in London in the March ending quarter of 2017 were significantly cheaper as compared to the same period last year courtesy the strengthening value of the Indian Rupee against the Great Britain Pound (GBP), according to the Knight Frank Global Currency Report 2017.

The report gauged the impact of currency movements for international investors purchasing luxury residential properties in key cities across the globe.

The weakening pound in the wake of events such as Brexit made properties in London 14.1 percent cheaper for rupee denominated investors. As a result, Indian investors had the second highest purchasing power for properties in London only behind the Russian Ruble denominated investors. For the latter, the difference in prices courtesy currency fluctuation was a staggering 28.3 percent, the report shows.

In fact, the currency value-induced discount for rupee denominated investors was higher than Australia (11.7 percent), United States (11.6 percent), China (5.8 percent) and Europe (5.6 percent).

“Traditionally Indians have had a penchant for buying properties in London. Over the past couple of years, the Indian currency has significantly strengthened against major global currencies on the back of some significant reforms. To top it up geopolitical developments in the UK starting from the Brexit had its bearing on the property market with decline in prices close to 6 percent. Until the March-ending quarter of 2017 the Indian currency appreciated by 14.1 percent against the Pound Sterling in comparison to the same period last year. But when compared to June 23, 2016, the day of the Brexit referendum, the Indian currency was stronger by 18.7 percent until Q1 2017. That explains why Indians now regard property purchases more attractive in London,” says Dr. Samantak Das, chief economist and National Director, Knight Frank India.

A parallel analysis of property prices in London between January 2016 and December 2016 showed that luxury homes in the British capital was 20.4 percent cheaper for Indian rupee denominated investors. This study accounted for the decline in property prices in addition to weakening of the GBP.

Similarly the report identified key international buyers in six global cities and highlighted the extent to which currency shifts over the last year (between Q1 2016 and Q1 2017) have influenced purchasing power.

In Hong Kong, for instance, the Australian Dollar and Russian Ruble denominated buyers found it cheaper by 0.4 percent and 19 percent respectively while those with Singaporean Dollar, Chinese Yuan and British Pound found it more expensive by 3.1 percent, 6.3 percent and 12.9 percent respectively.

SOURCE: http://www.moneycontrol.com/news/business/real-estate/indian-buyers-find-london-luxury-homes-attractive-and-cheaper-by-over-14-2362733.html

Did you find apk for android? You can find new Free Android Games and apps.

LEAVE A REPLY

Please enter your comment!
Please enter your name here