Chinese and Middle East investors are currently the dominant buyers of London residential real estate, while Russian investors are renting, according to Knight Frank.
The safe haven appeal of prime central London property continues to underpin demand, despite economic volatility centered on China and other geopolitical concerns around the world, according to a Knight Frank 'Super-Prime London Insight' January report.
Investors in the Middle East are also looking to diversify their holdings and London is seen as an important market, said Andrew Hay, global head of residential at Knight Frank.
"They're looking to invest in a wide range of assets, a wide range of territories, and U.K. property market (both commercial and residential) is a very good sector for them, along with Germany, United States and other locations," Hay toldAsia Squawk Box.
According to Knight Frank's January report, new super-prime developments in Kensington and Mayfair are some of the best residential schemes in London. Super-prime property refers to real estate valued above $14.32 million.