Why Indian investors love London property

Press release | 05.06.2024 | Benham and Reeves

London is a major financial and educational centre, as well as one of the most important global gateways for investors. Buying property in London allows Indian investors to enter Europe while also providing a better risk diversification option. View our guide to buying UK property for Indian investors.

With prices per square foot nearly identical in London and Mumbai — many Indian property investors in the UK and India are taking an active interest in what London’s real estate market has to offer.

Besides, similar legal systems have strengthened the UK-India relationship by making transactions less complicated.

There are several reasons why the UK capital continues to attract Indian investment, some of which are listed in this article:

Key Highlights:

London’s reliable financial systems
A growing interest in acquiring trophy assets in London
Why Indian parents should buy a home for their kids in London
Indian companies expanding operations in London
The perfect holiday-home destination

1. Trophy Assets

Trophy assets can include investments in historic structures or recently completed skyscrapers. One reason Indian homebuyers are attracted to trophy properties is value preservation — as they are not subject to the same market cycles as most properties.

As London has a finite number of one-of-a-kind trophy property assets, Indian buyers are snapping up these investment opportunities.

2. Educational Opportunities

In many ways, London is a student city. Over 40 higher education institutions, including 18 universities (Oxford, King’s College London, Imperial College London, London School of Economics, etc.), are housed in this academic hotspot.

When your child is ready to relocate to London for educational or professional reasons, ewe will be delighted to advise you on some fantastic London property investments.

3. Long Term Capital Growth

Another important reason Indian investors prefer London properties over other countries is capital growth. Capital growth refers to the increase in value of a property over time, as determined by comparing the property’s value at the time of purchase and sale.

Rental yield is another reason. With an average yield of 3-4%, most Indian buyers choose to invest in London’s buy-to-let properties. Besides, with the recent launch of Crossrail and large-scale regeneration projects — prices are expected to rise over the next decade.

4. Holiday Homes

In 2022, when most corporate professionals have the option to work from home, geographical constraints no longer exist. Hence, after being confined in their country for over two years — many Indians are looking for holiday homes in London.

Because the Capital is well-connected by road, rail, and air, Indians have been rushing to purchase homes in prime areas like Marylebone, Clerkenwell, Kensington and Chelsea.

5. Expanding Company Operations

Due to rapid globalisation, a growing economy, and access to almost all capital markets – many Indian companies are opening offices in London. It is relatively simple to expand operations in London as Indian nationals do not need to live in the UK to rent or run an office.

6. Cultural Influence

Alarge proportion of the Indian community lives in Southall, also known as Little India. Moreover, Wembley, home to the famous Wembley Stadium, is known as Little Ahmedabad due to the high concentration of Indians, particularly Gujaratis.

People of both countries also share a never-ending affinity for cricket, besides various cultural similarities.

How you can invest in London property?

London is rapidly attracting Indian investments due to its economic stability and the global standing of its financial institutions. This suggests that now is an excellent time to invest.

Let the Benham & Reeves team assist you in finding the best investment opportunities in the Capital. With over 19 offices in London and local offices in Delhi and Mumbai, contact us today to learn how you can invest in London property and the benefits associated