Over the past three years super-rich Africans have spent nearly $900 million on luxury residential property in London’s best addresses. Properties like “The Lancasters” close to Hyde Park have long attracted wealthy investors from around the world. Credit: cnn.com
Wealth manager Bimpe Nkontchou says Africans spend large sums on interior designs in London and often select modern and clean furnishing rather than ornate or traditional styles. Credit: cnn.com
Trevor Square, a short walk from high-end department store Harrods, is attractive to the world’s most wealthy. Most of the Africans spending big in London come from just six countries: Nigeria, Ghana, Congo, Gabon, Cameroon and Senegal. Credit: cnn.com
Nigerians alone have bought over $373 million worth of property in London over the last three years. Credit: cnn.com
Overlooking London’s Hyde Park, properties in the One Hyde Park development can cost as much as $208 million. Included in the price is use of the complex’s cinema, saunas and panic room. Credit: cnn.com
According to luxury property experts Beauchamp Estates, African buyers often want a home with parking as trophy cars are a passion amongst wealthy families. Credit: cnn.com
Africans buying property are also said to be attracted to the UK by schools such as Cheltenham Ladies College, which is located two and a half hours outside central London. Credit: cnn.com
Nigerians are London’s fourth biggest overseas shoppers by spend, averaging $640 in each shop. Some spend an average of $7,500 per shop in places like Harrods. Credit: cnn.com
Sophisticated, glamorous and spacious — when the super-rich go house-hunting they are searching for something special.
Real estate in London’s swankier suburbs can catch a buyers’ eye. Mayfair, Kensington and Chelsea have long been the stomping ground of the elite — and are now welcoming a new wave of African investors.
“The Africans who are coming into London now are Africans who themselves have worked for their money,” explains Bimpe Nkontchou, a British-Nigerian wealth manager based in London.
Recommended: The top 10 cities for Africa’s millionaires (Photos, Videos, & Infographic)
“They have grown in industry and are actually part of the exciting story of the African renaissance,” she continues. “It’s bringing to London the best of the continent.”
The rise of Africa’s big spenders. Credit: cnn.com
These investors are having a considerable impact on London’s property market and they mainly come from just six countries: Nigeria
, Democratic Republic of Congo
Of these, Nigerians are splashing out the most cash when it comes to bricks and mortar in the British capital — typically spending between $22 and $37 million on securing a property, according to luxury property agents Beauchamp Estates. Their research shows that over the past three years Africans have spent over $900 million on luxury residential property in London.
Super-rich Africans spend $900 milllion on London homes.
“The new international African is very well-traveled,” explains Nkontchou. “Educated in the U.S., UK and different parts of Europe their taste is definitely more modern and clean.”
Recommended: African oligarchs splash out on London homes
Owning a home in post codes like W1 or W8 — around the corner from Kensington Palace — means more than having a place to lay your head. These buildings are investments which are expected to gain even bigger value in the coming years.
High-end auction house Sotheby’s says that foreign investors see London as a “safe haven” for prime property investments, and ranks the city as the second most important hub for ultra high-net-worth homes. The only spot more important on the planet is New York City.
“The African buyer market in London has significant room for growth” – Gary Hersham, Beauchamp Estates Director
For evidence that London still attracts high-end buyers, look no further than the sale of a penthouse in Mayfair which fetched $40 million earlier this year.
As well as an intelligent investment, many of the African buyers see these houses as a way of maintaining long standing cultural ties with London — and it’s here they want to send their children to school.
Recommended: The Nigerians have arrived … and London is paying attention
Harrow, Eton, Cheltenham Ladies College are all among the list of respected institutions that teach the offspring of wealthy Africans. The Nigerian Embassy in London calculates that Nigerian nationals now spend over $446 million per year on fees, tutoring and accommodation at British schools and universities.
“West African clients are very much driven by the need to educate their children,” says Nkontchou. “Education usually means putting the children on an international stage, and that’s one reason why this is feeding into the demand for property in London.”
Indeed, education industry experts ICEF Monitor say there were over 17,500 Nigerians studying in British universities in 2012 — about 1,000 more than the 2009/10 academic session.
And experts are expecting this trend to continue.
“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,” says Gary Hersham, director at Beauchamp Estates.
Recommended: How Nigeria’s Rich Spend Over $2 Million On Their Dream Wedding
“African buyers or luxury tenants in London are currently where the Russians and Ukrainians were five years ago. They have the resources and desire to purchase or rental luxury homes in Prime Central London,” he adds. “It is going to be the African century.”
Check out more analytics from African Business Central.
Watch more videos from African Business Central.
Source: Breaking News, U.S., World, Weather, Entertainment & Video News – CNN.com
- The rise in African buyers seeking homes in central London
- African oligarchs splash out on London homes
- The Nigerians have arrived … and London is paying attention
- Africa Report 2015 – Real Estate Markets in a Continent of Growth and Opportunity: Knight Frank (Infographics & Report)
- MasterCard and Ecobank partner to accelerate electronic payments adoption in 28 Sub-Saharan African countries
- Compelling investment markets in Africa – Inside Riscura’s Bright Africa 2015 Report: Debbie O’Hanlon, Senior Analyst, RisCura (Infographics)
- The 2015 African Retail Development Index (Infographics, Video & Report): AT Kearney
- Africa’s Prospects – Macro Environment, Business, Consumer and Retail Outlook Indicators (Infographics & Report): Nielsen
- Ranks of African millionaires swell
- How Africa’s super-rich spend their millions (Video)
- Nigeria’s Arik Air launches frequent flyer program – Arik Affinity Wings
- Africa: A growing insurance market
- Game Changers Africa: A profile of Ozwald Boateng (Video)
- Africa’s megaprojects: 326 billion reasons Africa is on the move (Photos, Infographic & Video)
- Building a Boston in Cape Town: $13B dream rises from ashes of apartheid
- Real GDP Growth Rates (2007 – 2017) of Countries in Africa (Interactive Map & Chart)
- Shop Africa 2016 (Report & Infographics): Knight Frank
- Citi to Deutsche Bank on charm offensive in Africa as banks clamor for bond issuance deals
- Africa50 Infrastructure Fund raises $830M in first closing
- Looking for an investment? African art is hotter than gold (Photos & Videos)
- 3 reasons things are looking up for African economies: McKinsey & World Economic Forum
- Africa’s richest man plans to almost double the continent’s cement production by 2020 (Infographic)
- African Debt Offers Some Respite as Bond Rout Sweeps Globe
- The mobile economy – Africa 2016: GSMA (Infographics & Report)
- South African Airways launches flights to Abuja, Nigeria
- Nigeria’s Interswitch considers IPO dual-listing on London Stock Exchange & Nigerian Stock Exchange for Africa expansion
- Into Africa: The continent’s Cities of Opportunity – PwC (Video, Presentation, and Report)
- Goodbye Europe, Hello Africa: Frances Mensah Williams, Managing Editor, ReConnect Africa
- Cementing Africa’s future: The rise and rise of Aliko Dangote, Africa’s richest man
- Why office space in Lagos is more expensive than New York (Infographic)
- Africa’s First City: Lagos, Nigeria
- Top property markets in Africa
- MTN Group: An interesting way to gain exposure to the African growth story (Infographic)
- Fashion-conscious Lagosians switch to online shopping
- African Women to Watch: Fashion (Video)
- Barclays’ Exposure To Africa Is A Catalyst For Growth
- Yaya Toure wins fourth African Player of the Year title in a row
- Nigeria Strategy – H1 2015: ARM (Report)
- Ebola for beginners: Twitter map outlines some elementary geography
- Quick Guide for Those Who Can’t Figure Out the Naira’s Worth (Infographics)