Real estate prices in London increased this month as a result of a government initiative and purchases by foreigners, including Gulf Arabs, which are working to drive up prices in the capital.
Asking prices in London soared 10.2 percent in October, pushing typical asking prices in the capital to £544,232, up from £493,748 the previous month, according to a recently released report by Righmove, a company specializing in monitoring real estate activity in Britain.
Broker and General-Director of Overseas Link International Mustapha al-Moussawi told Al Arabiya that foreign investors are buying up property in London.
According to Moussawi, most of those interested in investing in the British capital are either Gulf citizens, Malaysians or Russians.
The Times newspaper recently reported that Kuwait is readying to buy a commercial center which includes the offices of London’s mayor.
Such foreign demand works to drive real estate prices up.
However, according to Rightmove, a program introduced by David Cameron’s government is also working to increase prices.
The government initiative aims to help British citizens purchase property and although most of those who benefit from this program plan to buy houses in the next 12 months, they have already begun to pay the 10 percent down payment, according to Rightmove.
Four boroughs, of the capital’s 32 boroughs, feature average house prices in excess of one million pounds sterling, according to Rightmove.
Properties in East London have recorded the lowest price increase, of just 6.2 percent in the last month.
The average price of a house in East London is 231,000 pounds sterling ($373,596), according to Rightmove.