There has been widespread reporting that most buying activity is focusing away from the city as people seek greater floor area and more outside space for their money.
What is the reality? To some extent, the above is true, yet polarised. There is evidence, noticeably in the family market, and within a certain price bracket, of buyers moving out of London. This is not, however, a phenomenon of the super-prime and ultra-prime sectors.
The marked shift among Brits, many of whom decamped to rural and coastal areas during lockdown, has inspired a change in lifestyle. But this may be short term.
Those who love city life, as well as overseas real estate buyers, do not want to give up owning a piece of London. The countryside may come as an addition rather than a substitute.
Buyers are thinking very much medium- and long-term. Covid-19 may be here for a while longer but the virus will eventually flatten, there will be a vaccine and the vibrancy of life in the capital will return.
According to the latest report from a leading international estate agency with strong London presence:
“Easing of international travel restrictions will be particularly important for central London and other markets more reliant on overseas demand. When and how this will happen still remains to be seen but for now, the value on offer in these markets represents a compelling buying opportunity for those who take a longer-term view.”
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“The prime markets of London have continued to defy gravity over the summer months, a period which is generally known to be much quieter. The number of properties worth £1 million or more marked as sold subject to contract across the capital was 87% higher in the third quarter of 2020, compared to the same period last year.”
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The prime markets of London have continued to defy gravity over the summer months…
“Buyer and seller expectations on price also appear to be aligning … [which] suggests that there is a balanced market and, at a headline level, there has been little movement in prices. Indeed, across prime London as a whole, prices remained flat in the third quarter of 2020, leaving them 1.0% higher than a year ago.”
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“[A] lack of available stock at the top end has resulted in a slight out-performance by the highest value homes. … In central London, £10 million+ property has risen in value by 0.2% in the quarter … [and] the top end of the market continues to look good value after suffering the most over the past six years because of successive stamp duty changes.”
Although predictions now project 17% growth over the next five years for prime London we feel it is a little too early to tell. However, top London real estate is an asset class in which we firmly believe. But top means top and investment in this sector involves considerable experience, micro-knowledge and discernment.
It pays to be guided by experts who will research and search on your behalf; provide you with honest, impartial advice; present you with the finest options and steer you through the purchase. You will then have a sound asset that should reflect good capital growth as well as provide a high quality of living in one of the world’s finest and most beautiful cities.
If you are interested in purchasing a piece of super-prime London, talk to us.
Nota Bene Real Estate