A recent report by a leading London based boutique estate agents found that there is a link between the purchase of luxury goods and residential property in London.
High-net-worth overseas visitors from wealthy countries in the Middle East, Asia and Africa are buying expensive designer handbags, clothing and jewellery in Knightsbridge, Mayfair and Marylebone are also purchasing apartments and houses in some of the capital city’s most chic areas.
The report further highlighted that the top three purchasers of luxury retail goods and real estate in London hailed from Saudi Arabia, Qatar and China.
2015 has seen luxury retail spending in central London by shoppers from Saudi Arabia rise 28 per cent year-on-year, with the average spend per transaction averaging £1,495 ($2,306). Similarly, residential property sales in central London to Saudi clients was up 18 per cent year-on-year, with the average purchase ranging from £5 million to £20 million.
This trend continues with spending by shoppers from Qatar up 12 per cent year-on-year, with the average spend per transaction averaging £1,906 and residential property sales to Qatari buyers up 15 per cent year-on-year, with the average spend per transaction ranging from £3 million to £15 million.
Meanwhile, the retail spending in the capital by Chinese shoppers was up 9 per cent year-on-year, with the average spend per transaction averaging £1,450, while property sales in London to Chinese purchasers was up 3 per cent year-on-year with the average spend per transaction ranging from £450,000 to £1.5 million.
The report highlighted that over 80 per cent of all property bought by buyers from Saudi Arabia and Qatar were in the districts of Knightsbridge, Mayfair and Marylebone and accounted for 16 per cent of all overseas retail sales in London’s West End. Coincidentally, these are also the key locations where they do the bulk of their luxury retail shopping.