High-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNIs) from India have consistently identified London as a prime destination for foreign real estate investments. Over the years, the profile of this clientele has shifted from industrialists and Bollywood stars to include parents eager to secure properties in the UK for their children pursuing their university education.
Among the significant groups of property owners in London, Indians form one of the largest communities. Akash Puri, Director of International at India Sotheby’s International Realty, shares, "Some are students and families purchasing homes while visiting the UK for education, some are UHNIs with vacation homes abroad, and others have resided in the UK for generations."
Presently, the pricing of real estate in London is on par with major Indian cities like Mumbai and Delhi, where a 1BHK unit commands around Rs 3.2 crore, and a 3BHK unit costs over Rs 5 crore. Prominent neighborhoods such as Oxford Circus, Mayfair, and Marylebone are particularly favored by affluent Indians.
Key Attraction Factors
Wealthy Indians are attracted to London as a real estate investment hub for myriad reasons, as noted by an expert who discussed this trend with HT Digital. The city is noted for its extensive business growth opportunities, stable capital appreciation, currency diversification, favorable tax conditions, a high quality of living, and various residential options available through property investments.
"Buying property in the outskirts of London seems wiser than continually paying high rents, as we sought to guarantee a safer and more secure future for our children," stated a couple who recently made a property acquisition.
According to Vivek Rathi, head of research at property consultancy Knight Frank India, "Real estate prices in the area have been on an upward trend in recent years, defying predictions that Brexit would hinder London's status as a premier property market." He further highlights that London's liberal atmosphere and its esteemed educational institutions add to its allure.
Indians are actively pursuing properties in London amidst forecasts of consistent capital gains and robust rental yields linked to a notable supply-demand gap. Presently, the demand for housing significantly surpasses supply, leading to an approximate 35% shortfall in housing availability. Despite facing economic pressures, London’s real estate market has remained resilient due to this disparity. For several years, HNWIs have recognized favorable property prices and a stamp duty holiday as key drivers for their investments in the city.
Some ultra-wealthy Indians consider owning prestigious properties in sought-after locales such as Mumbai, New York, and London a statement of their status and prestige.
Analyzing the Data
A report from Knight Frank illustrates that in 2023, the population of ultra-high-net-worth individuals in India grew by 6.1% annually, which surpasses the global average increase of 4.2%. Individuals with a net worth of at least $30 million are termed ultra-high net worth.
Rathi adds, "The propensity for wealth to transition to foreign markets will likely escalate as the count of NHIs and UHNIs in India amplifies, inevitably impacting London’s real estate landscape."
According to the report, residential real estate constitutes roughly 32% of the wealth of India’s ultra-rich, with 14% of this wealth concentrated in overseas properties. Approaching 2024, an estimated 12% aspire to purchase a new residence.
A survey conducted by the consultancy indicated that among high net worth individuals, about 47% of UHNIs from India would prefer to acquire properties in the UK, followed by 41% in the UAE and 29% in the United States.
Indian Developers in the UK
Owing to the myriad advantages presented by the UK property sector, numerous Indian developers have eagerly sought to incorporate London into their global development strategies.
For instance, the Lodha Group, a Mumbai-based firm, ventured into the London market in 2013 and has since developed two residential projects in the city center: No. 1 Grosvenor Square (2017) and Lincoln Square (2016).
A recent example includes a substantial $200 million investment from commercial real estate platform Property Share in the UK's warehousing sector, positioning the organization for further growth in the area.
Prominent Owners
Several notable businessmen, including Neeraj Kanwar, Lakshmi Mittal, Ravi Ruia, Mukesh Ambani, and the Hinduja brothers, are recognized for owning properties in London.
Adar Poonawalla, the CEO of Serum Institute of India, reportedly acquired a lavish 25,000 square-foot mansion in Mayfair for Rs 1,446 crore, marking it as one of the most expensive homes in London for 2023.
Additionally, rumors suggest that Mukesh Ambani owns Stoke Park, a historic hotel located just outside London, featuring thirteen tennis courts, fourteen acres of manicured gardens, and a 27-hole golf course on the sprawling estate with 49 bedrooms. Reports indicate that the billionaire bought this prestigious property for 57 million pounds, equivalent to Rs 529 crore, in 2020.