Lon­don still re­silient and pros­pers

Financial Mirror (Cyprus) - - FRONT PAGE -

Many things are chang­ing in the prop­erty mar­ket in Lon­don at the mo­ment and the mar­ket for new build prop­erty is grow­ing rapidly. Pas­tor Real Es­tate has con­ducted a re­search re­port that of­fers an in-depth anal­y­sis of the prime cen­tral Lon­don residential prop­erty mar­ket. These in­sights re­veal the de­vel­op­ment of the prime cen­tral Lon­don mar­ket.

Since 2009, hous­ing stock across prime cen­tral Lon­don has risen by 8.6%, which equates to 5,200 new residential ad­dresses. This is com­pared to only 4% across In­ner Lon­don as a whole. There are a to­tal of 7,000 new homes in the pipeline and to­tal hous­ing stock has in­creased by 8.6%. These days, the mod­ern de­vel­op­ers in Lon­don are in­volved in shift­ing from small sin­gleoc­cu­pancy units to fam­ily­sized homes.

Also, there is at least one three-bed­room flat within 71% of the de­vel­op­ments cur­rently in the pipeline in Lon­don. There has been a shift in the de­vel­op­ment pipeline to larger units across the neigh­bour­hoods of Maryle­bone, Bel­gravia, Knights­bridge and May­fair. In ad­di­tion, there has also been an in­crease in the av­er­age size of apart­ments. The av­er­age size of stu­dio apart­ments is 763 square feet, com­pared to 543 sq.ft. for those that are un­der con­struc­tion.

Op­ti­mism and con­fi­dence have been re­turn­ing to the prime cen­tral Lon­don prop­erty mar­ket af­ter a long pe­riod char­ac­terised by a sense of hes­i­tancy. View­ings, of­fers and sales have in­creased since May across all sec­tors of the mar­ket, and there have been a lot of en­quiries from in­ter­na­tional and do­mes­tic pur­chasers – es­pe­cially from the Mid­dle East.

In 2015, there are 13 schemes that are due to be com­pleted, bring­ing 213 units to the mar­ket. The ma­jor­ity of these units are within two main Lon­don schemes, the Chilterns (Maryle­bone) and Phase 1 of the Chelsea Bar­racks (Bel­gravia).

There were fears of a hous­ing bub­ble in Lon­don at the be­gin­ning of 2014, which were then dis­si­pated by the in­tro­duc­tion of the Mort­gage Mar­ket Re­view and the fear of a po­ten­tial rise in in­ter­est rates.

Through it all, prime cen­tral Lon­don’s residential mar­ket has re­mained re­silient and has con­tin­ued to pros­per. Lux­u­ri­ous de­vel­op­ments have been in very high de­mand for both do­mes­tic and in­ter­na­tional buy­ers. The im­por­tant fac­tors cited in prime cen­tral Lon­don pur­chases have been high-spec­i­fi­ca­tion, qual­ity and lo­ca­tion, and sellers are mar­ket­ing the “lifestyle” of the area. De­vel­op­ers are work­ing to cre­ate ur­ban re­treats within Lon­don, in the style of ul­tra-prime and su­per-prime.

Lon­don is very at­trac­tive as a safe haven and it has been a de­sir­able in­vest­ment in the re­cent years fol­low­ing the credit crunch. The growth in prop­erty val­ues clearly demon­strates the at­trac­tion of Lon­don residential prop­erty. The ma­jor­ity of the prop­er­ties that are in the de­vel­op­ment pipeline are new, as op­posed to old build­ings that have been re­fur­bished or new build­ings with the old façade re­tained. Of course, this statis­tic is skewed by the large new build schemes that in­clude Clarges May­fair.

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