London (CNN) – As French and Greek voters head to the polls this weekend, some property owners across the Channel will be rubbing their hands with glee. The reason: a robust real estate market in London's most exclusive areas which have become a safe haven for eurozone investors keen to preserve family fortunes and avoid tightening tax regimes back home. A favorite to win France's presidential elections on Sunday, Socialist Party leader Francois Hollande once quipped that he didn't like "the rich." Among his key policies: a 75% income tax band for the wealthiest citizens, which experts say will exacerbate an exodus already underway. London is home to an estimated 300,000 French expatriates, often earning it the nickname “Paris-upon-Thames.” This once quiet and quintessentially English part of town is now home to thousands of French families. The area has its own school, or “lycée,” a Francophone cinema, cafes and cake shops – all catering to an army of well-heeled Continentals eager to set up home in London. Property website Rightmove estimates home values in Kensington rose on average 5% to 6% per month in the first quarter of the year. That's almost six times faster than the rest of the capital, while local estate agents Douglas and Gordon say asking amounts in prime postcodes like “SW7” and “SW5” have soared 40% since the nationwide house price peak of 2007. The result: the average house in this chic quarter now goes for around $3.2 million. So far... So French... Property brokers Knight Frank say French investors were the second biggest group after British buyers in the first quarter, accounting for 8% of real estate purchases. So far this year they say enquiries from French clients have soared 19%. At nearby Douglas & Gordon meanwhile demand is so buoyant they are setting up a special French-speaking office. The new branch is hiring four French staff and will be up and running this summer, just in time for the Olympic Games. “The French have always loved this area but we are seeing more and more,” says Ed Mead, director of Douglas & Gordon in South Kensington. “They like the wide avenues and big apartments this part of town offers but also the quaint mews houses. To think some of these properties were built as stables for horses originally but they are now they are worth $2-to-$3 million but demand is strong and now they are all being redone.” But it's not just the French who are facing a change of government and an uncertain future in the eurozone. Wealthy Greeks have been ploughing their money into parts of the British capital since their country's first bailout two years ago and continue to do so, much to the delight of those with something to sell in “South Ken.” Ben Board's family has just accepted an offer to sell their two-bedroom apartment in the desirable district for around $2 million from a Greek buyer. Not only was the amount not far from his asking price but it was entirely in cash. What's more: it came only two months after the flat hit the market. “We had very strong interest. Perhaps 200 requests to view the flat, mainly from Southern Europeans,” said Board. Britain may be in the throes of recession but as the eurozone crisis continues to drag on, the dreaded double dip is no deterrent it seems for those in need of a port in the storm. And that for the moment that harbor remains Prime London real estate even if it is exorbitantly expensive. |
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money laundering? rich people trying to escape taxes that would in a small way help their fellow poor citizens?
The French school and shops have been there for at least 35 years so I think this story is a bit of a stretch. Rich foreigners have been buying property in London for a long time. You also forget to mention the vast number of Brits who have bought property in France – its not one way traffic.
It's not like the richest reinvested in France and had any intention to do so. It's just like in the USA. Take lessons from this. Money does NOT trickle down. The rich are NOT the job creators, but rather the companies are. When the rich have a little more taxes, they will have more incentive to reinvest into their companies because the extra money would have been lost anyway. The rich are only here to serve for other rich and increasing their taxes to any rate would have not changed. their quality. of life.
Georges Sioufi
Canada
@Patti The difference between the French and British Expats is that the British Expats are all retired and offer hardly anything to the French Economy while also taking their burden off British Welfare. The French Expats are employed wealthy bankers who pay lots to the British Government and being young take less money to care for than an 80 year old.
If it weren't for 'the rich' people. You and I wouldn't have jobs!
Soon property will only worth the soil it sits on. Location will mean nothing because of the ever shrinking Tax base through unemployment.
Nice for London ! But this has been going on for many years. Could be that London is just a nice city. Monarchy and all.!
Please read about binary economics. Class warfare is not help to the rich or poor. allowing employees ownership is the answer.
The wealthy from all over the world have always been attracted to central london. They love buying property here, even if they are here only 2-3 weeks in a year. London offers not only a good safe haven for property investment, but also
there are fantastic shops along bond street, sloane street, oxford street. Great restaurants. Good night life, so they can enjoy for a couple of weeks. They love spending their money in london, so it most certainly benefits london economy. In fact lot of ppl, while holidaying in France and Italy, like to keep 1-2 hotel rooms in London, for the last week of august or early september, so they can shop till they drop before they head home. In all hotels of london, come June, July, no ROOMs are available, and london hotels charge doube even triple the rates in many cases as wealthy foreigners and wealthy foreign tourists want to stay. So all in all, its good for the economy.
The NF will make short work of them when they arrive in the UK.
Reblogged this on London Luxury Real Estate.
Hi.I am a citizen of the world and of greece.I belive in the europian connection with greece.Mr Tsipras isw mixed up ,he wants out but there is no way out.I propose to the IMF and the europian finansial mechanism to call him and talk in person with him and then the resalts of this dialog to be known.This will help the greeks for the next election in order not to become a national disaster.
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Plazaestates.co.uk experts say the price of property in some of London's most exclusive areas is already being fuelled by an apparent exodus of the rich to the UK. The brokers said in areas like South Kensington French investors were the second biggest group after British buyers in the first quarter, accounting for 8 per cent of property purchases.