Eighty five percent of tenants in the prime central London lettings market originate from the Middle East and demand is increasing particularly for newly refurbished, best in class properties – according to the latest 2019 Lettings Focus figures from luxury property agents Harrods Estates.
The report adds these tenants are paying on average £2,400 pw for long term lets, or £3,500 pw in the vicinity of Harrods. However, some short lets (between 5 weeks and 3 months) have attracted rents of £17,000 pw, £12,500 pw and £10,000 pw.
Just 15% of tenants are from elsewhere – the Far East, Asia, Russia and Europe.
Sarah McIntyre, Lettings Director at Harrods Estates explains: “We have seen a marked increase in the demand for lettings in prime central London in the last 12 months with the majority of tenants coming from the Middle East (approx. 85%) and the remaining 15% coming from the Far East, Asia, Russia and Europe. In particular, our Knightsbridge office has seen a 47% rise in transactions and an increase in the number of high value short term lettings, particularly over the summer months being the most popular time of year.”
Harrods Estates’ statistics may not necessarily be representative of all luxury property agents in central London of course. However, chances are they are by no means untypical, showing just how crucial Middle Eastern tenants as well as buyers are to this market.