Indians bought homes in London at a 14 per cent cheaper price during the March quarter than the year-ago period with the rupee gaining strength against the British pound, according to Knight Frank India. The Knight Frank Global Currency Report 2017, which was released today, tracks the impact of currency movements for global investors purchasing luxury residential properties in key cities across the world. “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 (INR) against the Great Britain Pound (GBP),” Knight Frank said in a statement.
The weakening pound because of development like Brexit made properties in London 14.1 per cent cheaper for Indian 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 per cent,” the report showed. The currency value-induced discount for INR (Indian Rupee) denominated investors was higher than Australia (11.7 per cent), United States (11.6 per cent), China (5.8 per cent) and Europe (5.6 per cent).
“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,” said Samantak Das, chief economist and National Director, Knight Frank India. Property prices in London market have declined by 6 per cent due to geopolitical developments in the UK starting from the Brexit, he added.
Das said the Indian currency was stronger by 18.7 per cent until Q1 of 2017 as compared to June 23, 2016, the day of the Brexit referendum. “That explains why Indians now regard property purchases more attractive in London,” Das said.