Wealthy Nigerians led other African nationals have spent more thanN158,979,274,500.00 (about £600 million) on property in London in the past three years. A report released by Beauchamp Estates, which sells some of London’s most expensive homes, also revealed that they spend almost £4million (about N1 billion) every week on London homes.
The up-market estate agency noted that Nigerians are the biggest spenders, splashing out £250 million on London homes in the last three years, adding that the other buyers are from Ghana, Congo, Gabon, Cameroon and Senegal.
According to the report, the wealthy buyers typically spend between £15 million and £25 million on each home. While African buyers only account for 1.5 percent of transactions in the ‘ultra prime’ London market, they make up 5 percent of sales by value – up from 2 percent in 2012.
Nigerians listed in the report include Aliko Dangote, business magnate and Africa’s wealthiest man; Folorunsho Alakija, a billionaire oil tycoon, fashion designer and philanthropist, who is said to have recently bought four apartments in One Hyde Park, the super-exclusive development in Knightsbridge.
The report added that Alakija’s British-born nephew, Rotimi Alakija, who goes by the stage name of DJ Xclusive, has also invested property in London.
Gary Hersham, Managing Director of Beauchamp Estates, revealed that he has had three rich Nigerians enquiring about homes in the past week alone. “I’ve had an upturn in African buyers over the last few months.
The situation in West Africa at present is pushing rich African buyers back into Central London at a significantly higher level than is normally experienced. While war, disease and terrorism in West Africa grab media headlines, actually for super-rich Africans its domestic wealth, cultural ties to London, general safety and education for their children that are the key attractions for buying a home in central London.”
He said these super-rich look to buy property in the ‘platinum triangle’ which is made up of Mayfair, Belgravia and Knightsbridge.
Hersham added: “Continental African buyers or luxury tenants in London are currently where the Russians and Ukrainians were five years ago. At present 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 and maturity. Nigerians have been long standing property purchasers in the central London market, going back to the early 1980s.
However, in the 1980s and 1990s they typically purchased houses in North London, in Hampstead, St John’s Wood and Primrose Hill. Now, enhanced wealth has enabled them to move into the ultra prime market in Mayfair, Belgravia and Knightsbridge, and have been joined by affluent purchasers from other West African and French equatorial states.
Around 80 percent spend between £15 million to £25 million on a residential property, with 10 percent spending more than £30 million, the remaining 10 percent spending less than £10 million. If they are not buying, they are renting luxury homes for up to £15,000 per week and staying for between six weeks and three months.”
The estate agency report noted that London’s reputation for having a residential property market, which is secure and a stable investment, is one of the main reasons wealthy Africans are buying. Another reason is historic cultural and community ties.
Nigeria is a Commonwealth country and there is a community of 70,000 in London. There are a similar number of Ghanaians there. The third reason is education, with King’s School Canterbury, Wycombe Abbey, Cheltenham Ladies College, Eton, Harrow and Bradfield are among the favourite private schools for wealthy families from Africa.”
This is corroborated by the Nigerian embassy in London, Nigerian nationals spend more than £300 million per annum on tutoring, accommodation, fees and equipment at British schools and universities. Click to signup for FREE news updates, latest information and hottest gists everyday
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