Prices in prime areas of central London have risen 53% since the first quarter of 2009, only being out performed by 3 major global cities.
A major component of this is the continued expansion of demand for London property from international buyers. Buyers from abroad account for 51% of the purchases of properties selling for £1m and 60% of £5m plus transactions.
New build properties are popular with overseas customers, 40% of which were bought by investors from Hong Kong and Singapore.
London has various attractions including its status of being a global financial centre, the stable political situation and the standard of education with many buying properties off plan with a view to housing their children in them in later years.
In a report carried out by Knight Frank it stated that London and the South East did not see a “double dip” recession, with modest economic growth reported in these areas last year.
Some localised areas of London, while showing property value rises actually suffered a slight drop in rental incomes, with average rents down 3.2%.
Knight Frank have said that the amount of overseas investment in London during 2012 was £2.2bn, featuring investors from 52 different countries.