By John Lee.
Recent research claims that Iranian millionaires and businesses will spend £6 billion ($8.5 billion) over the next five-to-10 years on property outside Iran.
High-end Iranian-owned estate agent Rokstone says London is top of the list of locations being considered, alongside Dubai, Switzerland, parts of Germany and the South of France.
The top five most popular locations within London are expected to be Knightsbridge, Mayfair, South Kensington, Hampstead and St John’s Wood, with most buyers looking to spend “anything from £1m to £30m on a London home“.
It estimates that there are 32,000 individuals or households worth more than £2 million, 65 of whom have more than £70 million and four of which are billionaires. Around 1,000 to 1,500 of these are expected to buy property overseas.
“If five-to-20 per cent of this money comes to London or the UK, this is extremely significant sums of money flowing into the London/UK property market,” it adds.
Becky Fatemi, managing director of Rokstone, said:
“London will be Iranian’s top location for investing in real estate. Culturally if you are wealthy in Iran you invest in property and jewellery/gold as long term assets. Historically there are deep ties between the UK and Iran.
“Alternative locations have less appeal. Historically, rich Iranians also invested in New York and Los Angeles, but US government primary sanctions remain in place so these choices are not available. Dubai on the doorstep will also be popular but it cannot compete with London’s educational system or cool summer climate.
“The other historic ties are with Germany, Paris, the French Riviera and Switzerland but London is safer than these since a lot of properties in the capital are in conservation areas where building alterations are restricted so values hold and outperform continental Europe.”
(Source: City A.M., The Independent)