Renting and Sales Face Steady Demand in Londons Prime Properties

March 11, 2014 No Comments
London Properties

Central London reported a steady resilient pace in its demand for renting and home sales, as per findings by Strutt & Parker, during this quarter. The report is based on surveys conducted across Kensington, Chelsea, Notting Hill, Fulham, Belgravia and Knightsbridge. It says the prime properties saw some of the highest values in sales transactions, since 2006.

Central London properties show increased transaction values

The Strutt & Parker report reveals how the transaction values across prime properties in Central London, have reported an increase. The transaction values in Nottinghill and Kensington increased by 21.8 percent, when compared to their values in 2012. Fulham, South Kensington and Chelsea reported an improvement in their transaction values by 14.5 percent when compared to their values from 2012, which can be accounted to the large number of flats that were sold here, since their previous peak seen in 2006.

Strutt & Parker reported that nearly 44 percent of its buyers were from overseas last year. The renting scene in London is thriving as well. With the lettings figures hitting 13,752 in 2013, in Central London, the numbers marked an increase of 11.6 percent from 2012, even topping 2009′s 8.2 percent. Among all areas, Belgravia and Knightsbridge sub-markets saw the biggest changes, with a 32 percent increase from the previous year.

The year-on-year growth of the property values was seen to be 13 percent, due to the previous year’s manifestation and the accelerated pace in early 2013. During 2013, London recorded 63 sales which were over 10 million pounds in Central London, which accounted to an increase by five percent when compared to its 2012 statistics.

Does the future look promising?

The research firm head, Stephanie McMahon, said that international buyers showed particular interest in South Kensington, Fulham and Chelsea, with Knightsbridge being especially popular among Middle Easterners. Although Notting Hill and Kensington were popular in the domestic market scene, they have now received a fair amount of attention from those overseas.

London Lettings head, Zoe Rose, said that small family homes and lateral apartments, grow as popular choices among other properties. She says, professional couple, families and singles continue to hunt for homes to rent. A majority of them are in the 20 to 40 age group, and are employed in finance-based companies. The future will see a number of workers pour in from the Technology and IT sectors as well.

According to Strutt & Parker, 2014 will see an increase in the prices of properties in the real estate market, predicting nearly a six percent increase. The prediction remains uncertain, and cannot be confirmed as the 2015 elections will be around the corner then. The transaction levels usually hit a stagnated pace during elections, and it will be interesting to see if the sellers and buyers give in to the scenario or continue to express their enthusiasm over properties. The years following election, 2016-2017, are expected to pan out better for the real estate market as it bounces back to its phase of sustainable growth.

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