Prime property prices in central London set to grow 6% this year says CBRE
22-06-2012
 |
Average house prices in prime central London have increased by 35% over the last three years and are now 16% above their 2007 peak. CBRE points out that London can only be matched by Monaco and Hong Kong in terms of new build property prices with prime homes typically achieving between 1,500 and 2,500 per square foot and exclusive super prime properties selling for in excess of 3,000 per square foot.
Superprime residential markets have emerged as one of the only secure investment options for the worlds super wealthy. The very top end of the market remains exclusive, involving only a handful of cities, and within this elite group London is still one of the most compelling choices. As well as its position as an important financial and cultural destination, Londons time zone, infrastructure, education system and the language make it the top choice location for a trophy asset, said Mark Collins, head of residential at CBRE.
London is now absorbing a greater share of the global prime residential market causing it to grow. Landmark luxury developments have helped create new prime areas in London outside of the traditional 'golden postcodes' of Knightsbridge, Mayfair and Belgravia. Over the last decade, there has been a noticeable shift eastwards towards the City as values have increased to reflect the importance of the area as the worlds premier financial and business district.
Londons limited source of developable land means that supply will almost never satisfy demand. Whilst the location of a prime or superprime home is still paramount, exceptional schemes have created new market contending locations, Collins explained. Design and architecture are also important, but most extremely wealthy homebuyers will now not even consider a scheme without state of the art security and a comprehensive concierge service, ideally from a well known luxury brand, because they need to know that they are getting the very best money can buy, he added.
