The London property market that's been a favorite global hotspot for years, is fast losing its sheen as British pound becomes stronger, while emerging economies currencies are turning out to be weaker

This makes commercial space, office blocks and residential apartments and flats more expensive for emerging markets. The strength of British pound and ongoing currency crisis in the global markets are forcing overseas investors to pause for a while. 

Many property firms realized that demand for property in the London market is slowing down as Asian currencies are weaker making the transactions more expensive for buyers from Singapore, Malaysia, Hong Kong, South Africa, and so on. 

During the first half of 2015, property transactions from buyers from Hong Kong account for only 3.3 percent of total purchases in the prime London homes as against 5.6 percent during previous corresponding period.

The share of investments from Singapore also fell to 1.4 percent from 3.8 percent. Malaysian buyers made up 0.6 percent from 0.9percent. The recent blood bath on global stock markets has further dampened the investors' confidence.

However, market observers feel that this situation is only time being, foreign investors naturally look for safe haven investment during the days of crisis. Considering the present turmoil in the global stock markets, commodities and currency trading, the best option available is only property market. London property market will always attract overseas buyers, opine market analysts.

The property buying after the economic crisis in 2009 resulted in huge profits of GBP870million for those who sold out their holdings during the past two years. The total investment in Central London reached a record level of GBP24.6billion in 2014. 

But, this year, currency fluctuations are eroding the advantage of London property market. For instance a GBP2million worth house in London was selling at GBP2.75million at present considering rising value of British Pound. Regardless of real value of property market, foreign exchange fluctuations are making transactions more costly for overseas buyers.