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ChelSEA is seeing an unprecedented influx of Italians buying property.
Estate agents say the number of Italian buyers in west London has at least quadrupled since 2007 and accounts for up to 70 per cent of overseas clients, replacing Russians as the most prolific.
A tax amnesty from Italian prime minister Silvio Berlusconi has led to a stampede for addresses in Chelsea, Knightsbridge and South Kensington. In some streets, prices have already risen to pre-credit crunch levels.
Ed Meade, of Douglas & Gordon estate agency, said: "You've only got to listen to the accents around King's Road and... Fulham Road to know Italian is the new Russian."
The strength of the euro means London prices are still 25 per cent below the 2007 peak for Italian buyers. They also have the near certainty of a good return from letting - about 4.5 per cent - and the prospect of capital gains when the pound recovers.
Most are buying one or two-bedroom flats in the £500,000 to £2million range, with "locazione, locazione, locazione" crucial.
Charlie Bubear, of Savills, said: "It's a win, win for them as an investment, but they also come here for the culture, the shopping, the food. Last year I could have counted the number of Italian buyers on the fingers of one hand, this year I would need four or five."
Agents are expecting a final rush of Italian buyers ahead of 15 December, the Italian tax-amnesty deadline.
Under the amnesty the "repatriation" tax rate of 40 per cent is reduced to 10 per cent. Since it started in October about �100billion held in overseas accounts has been returned to Italy.
Reader views (2)
Italians visiting London for the food, is that supposed to be funny! Maybe they are also interested in learning how to dress well like British haha
- Peter, London, 17/11/2009 16:42
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I love Italians, their women, their Sangiovese, their food, their culture.
Let them IN!
- Anthony, Esher, Surrey, 17/11/2009 12:59
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