GLOBALSCAPE
GLOBALSCAPE
L
uxury homes bought by Indians
in London in the March ending
quarter of 2017 were signifi-
cantly cheaper as compared to
the same period last year
courtesy the strengthening value of the
Indian Rupee (INR) against the Great Brit-
ain Pound (GBP) according to the Knight
Frank Global Currency Report 2017.
The report gauged the impact of curren-
cy movements for international investors
purchasing luxury residential properties
in key cities across the globe.
The weakening pound in the wake
of events such as Brexit made proper-
ties in London 14.1% cheaper for INR
denominated investors. As a result Indian
investors had the second highest purchas-
ing power for properties in London only
behind the Russian Ruble denominated
investors. For the latter the diff erence in
prices courtesy currency fluctuation was a
staggering 28.3%, the report shows.
In fact the currency value-induced
discount for INR denominated investors
was higher than Australia (11.7%), United
States (11.6%), China (5.8%) and Europe
(5.6%).
Dr.Samantak Das, chief economist and
national director, Knight Frank India, said,
“Traditionally Indians have had a penchant
for buying properties in London. Over the
past couple of years the Indian currency
has significantly strengthened against ma-
jor global currencies on the back of some
significant reforms. To top it up geopoliti-
cal developments in the UK starting from
the Brexit had its bearing on the property
market with decline in prices close to 6%.
Until the March-ending quarter of 2017
the Indian currency appreciated by 14.1%
against the Pound Sterling in comparison
THE WEAKENING POUND
IN THE WAKE OF BREXIT
MADE PROPERTIES
IN LONDON 14.1% CHEAP-
ER FOR INR DENOMINATED
INVESTORS.
18
CHROMOHOMES OCTOBER 2017
THE PROPERTY PRICES
OF LUXURY HOMES IN
LONDON FROM JAN TO DEC
2016 WERE 20.4% CHEAP-
ER FOR INR DENOMINATED
INVESTORS.
to the same period last year. But when
compared to June 23 2016, the day of
the Brexit referendum, the Indian cur-
rency was stronger by 18.7% until Q1
2017. That explains why Indians now
regard property purchases more attractive
in London.”
A parallel analysis of property prices in
London between January 2016 and De-
cember 2016 showed that luxury homes
in the British capital was 20.4% cheaper
for INR denominated investors. This study
accounted for the decline in property
prices in addition to weakening of the GBP.
Similarly, the report identified key inter-
national buyers in six global cities and high-
lighted the extent to which currency shifts
over the last year (between Q1 2016 and Q1
2017) have influenced purchasing power.
In Hong Kong, for instance, the Austra-
lian Dollar and Russian Ruble denomi-
nated buyers found it cheaper by 0.4%
and 19% respectively while those with
Singaporean Dollar, Chinese Yuan and
British Pound found it more expensive by
3.1%, 6.3% and 12.9% respectively.
OCTOBER 2017 CHROMOHOMES
19