The recent exacerbation of the economic crisis in Greece as the country struggles with mounting debts and no financial lifeline from its creditors, has prompted more Greek investors to seek safety in London’s property market.
Independent property buying agency, Black Brick, has reported an increase in Greek clients looking to invest in the UK capital.
Camilla Dell, managing partner of Black Brick, comments:
“As we have seen time and again, economic (and political) instability brings buyers to London’s prime property market. In recent weeks, we have been advising a number of Greek clients on potential investments in the UK, as the risk of Greece crashing out of the Eurozone looms over the continent and, especially, over Greek savers, who could see their wealth slashed by the effect of any devaluation on domestically held assets.
“Greece’s super-rich have long been a feature of the top end of London’s property market, but the country’s recent woes have seen a different type of buyer arrive from Athens. Middle-class Greeks are looking to acquire London property as a hedge against the effects that a return to the drachma would have on pensions and similar investments held in Greece. They are typically looking for investment properties up to the £1 million mark that can provide stable income and hold their value. It is London’s near universal appeal to international property investors that provides that stability, especially at the prime end of the market.”
Camilla continues: “Buying activity from particular jurisdictions may ebb and flow, depending on local conditions. For example, demand from Singapore has fallen in the last six months due to the Singaporean authorities imposing restrictions on mortgage borrowing to prevent a domestic property bubble, with knock-on effects on Singaporeans’ ability to fund international real estate purchases. But the (likely temporary) departure of Singaporean buyers is being offset by growing interest from elsewhere. As well as increased inquiry from Greece, we continue to see growth in demand from China and, to a lesser extent, from Thailand.”
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