Wealthy
African buyers are spending almost £4million on London property every
week as they look to snap up exclusive investments in the UK, it has
emerged.
Super-rich
oligarchs are taking their vast resources and investing them in the
safe haven of London property - with more than £600million spent in the
capital in the past three years.
A
mixture of traditional reasons combined with increased terrorism and
the outbreak of Ebola is said to be behind the dramatic influx of
African money to the capital.
Super-rich African oligarchs are
taking their vast resources and investing them in the safe haven of
London property - with more than £600million spent in the capital in the
past three years and £4million spent in the city every week. They
favour the likes of One Hyde Park
Folorunsho Alakija, a billionaire oil
tycoon, fashion designer and philanthropist from Lagos, is a big
investor in the London market
Beauchamp Estates, which sells some of London's most expensive homes, said properties such as the one above are those favoured
While
African buyers only account for 1.5 per of transactions in the 'ultra
prime' London market, they make up five per cent of sales by value - up
from two per cent. This is by typically spending between £15million and
£25million on each home.
The
recent Ebola epidemic and continued terrorism from groups such as Boko
Haram has resulted in an increase in buyers in recent months.
Beauchamp Estates, which sells some of London's most expensive homes, today released a report on African buyers in the capital. The upmarket estate agency said the buyers are coming from six countries - Nigeria, Ghana, Congo, Gabon, Cameroon and Senegal.
Nigerians are the biggest spenders, with wealthy nationals forking out £250million on London homes in the last three years. The
new wave of super-rich includes Aliko Dangote, a Nigerian business
magnate who, with a £16billion fortune, is Africa's wealthiest man.
Folorunsho
Alakija, a billionaire oil tycoon, fashion designer and philanthropist
from Lagos, is also a big investor in the London property market. She
recently bought four apartments in One Hyde Park, the super-exclusive
development in Knightsbridge.
Her
British-born nephew Rotimi Alakija, who also goes by the stage name of
DJ Xclusive, has also invested property in the capital. It is thought other tycoons have also been eyeing up homes on Kensington Palace Gardens - known as Billionaires' Row
Nigerians are the biggest spenders in
London, with wealthy nationals forking out £250million on homes in the
city in the last three years
Beauchamp Estates said the African buyers are coming from six countries - Nigeria, Ghana, Congo, Gabon, Cameroon and Senegal. The super-rich look to buy luxury property in the 'platinum triangle' which is made up of Mayfair, Belgravia and Knightsbridge. Gary Hersham, managing director of Beauchamp Estates, revealed he has had three super-rich Nigerians enquiring about homes in the past week alone. This is despite the average person in Nigeria earning just £850 per year.
He said: 'I've had an upturn in African buyers over the last few months. 'The
situation in West Africa at present is pushing rich African buyers back
into Central London at a significantly higher level than is normally
experienced.
'While
war, disease and terrorism in West Africa grab media headlines,
actually for super-rich Africans its domestic wealth, cultural ties to
London, general safety and education for their children that are the key
attractions for buying a home in central London.'
Mr
Hersham said these super-rich look to buy property in the 'platinum
triangle' which is made up of Mayfair, Belgravia and Knightsbridge. Around
80 per cent spend between £15million to £25million on a residential
property, with ten per cent spending more than £30million.
If
they are not buying, they are renting luxury homes for up to
£15,000-per-week and staying for between six weeks and three months per
year.
London's
reputation for having a residential property market, which is secure
and a stable investment, is one of the main reasons wealthy Africans are
buying, according to Beauchamp Estates.
Another reason is historic cultural and community ties.
Nigeria
is a Commonwealth country and there is a community of 70,000 in London.
There are a similar number of Ghanaians in the capital.
It is thought the property tycoons
have been eyeing up homes on Kensington Palace Gardens - known as
Billionaires' Row (pictured)
London's reputation for having a
residential property market, which is secure and a stable investment, is
one of the main reasons wealthy Africans are buying, according to
Beauchamp Estates
Around 80 per cent spend between
£15million to £25million on a residential property, with ten per cent
spending more than £30million
If they are not buying, they are
renting luxury homes for up to £15,000-per-week and staying for between
six weeks and three months. The
third reason is education, with King's School Canterbury, Wycombe
Abbey, Cheltenham Ladies College, Eton, Harrow and Bradfield are among
the favourite private schools for wealthy families from Africa.
According
to the Nigerian embassy, Nigerian nationals spend more than
£300million-a-year on tutoring, accommodation, fees and equipment at
British schools and universities.
Mr Hersham added: 'It is going to be the African century. 'Continental African buyers or luxury tenants in London are currently where the Russians and Ukrainians were five years ago. 'At
present virtually all the transactions are for end use, not rental
investment, which indicates that the African buyer market in London has
significant room for growth and maturity.
'Nigerians have been long standing property purchasers in the central London market, going back to the early 1980s. 'However, in the 1980s and 1990s they typically purchased houses in North London, in Hampstead, St Johns Wood and Primrose Hill. 'Now,
enhanced wealth has enabled them to move into the ultra prime market in
Mayfair, Belgravia and Knightsbridge, and have been joined by affluent
purchasers from other West African and French equatorial states.'
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