Ultra high-net-worth investors from Iran are poised to go on a buying spree of properties around the world - and London is likely to be the top location.
Research by high end estate agent Rokstone claims that millionaires and businesses will spend £6bn over the next five-to-10 years on property outside Iran, following the lifting of sanctions.
London is top of the list of locations being eyed up, alongside Dubai, Switzerland, parts of Germany and the South of France, the report adds.
The top five most popular locations within London are expected to be the usual suspects: Knightsbridge, Mayfair, South Kensington, Hampstead and St John’s Wood. Most buyers will look to spend "anything from £1m to £30m on a London home".
The Iranian-owned estate agent estimates that there are 32,000 individuals or households worth more than £2m, 65 of whom have more than £70m and four of which are billionaires. Around 1,000 to 1,500 of these will buy property overseas, the report, which is based on New World Wealth data, claims."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.
The report believes there will be four type of property investors coming from Iran: private individuals or families, professional investors, private companies and quasi-state backed entities or sovereign wealth funds.
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.”