The capital values of properties in Central London are expected to rise by 21% over the next five years (2021), according to a latest research study conducted by renowned real estate advisor Savills.
In its research report titled ‘Residential Property Focus – Issue 1’, Savills pointed to the 14.6 per cent increase in the sales of properties valued £1mn+ in January 2017 as against January 2016 in prime London areas as the growth indicator. Quoting data from LonRes, Savills said that the recent market activity proved the continued appeal of prime London property among investors.
“More realistic pricing is arguably the reason behind the pick-up seen in transaction volumes in prime central London over the second half of 2016,” the report said.
On a year-on-year basis, the capital values of Central London property are set to reach the highest in 2019 (8 per cent). The capital values of other prime London areas are set to grow by 15 per cent over the next 5 years.
These findings demonstrate the stability of the London property market, especially the prime areas, as investors continue to show faith in them. The fact that the market withstood unforeseen developments during 2016 is an indication of the strong fundamentals of the London real estate market. London continues to remain a safe bet for international investors, as the returns are healthy.
More realistic pricing is arguably the reason behind the pick-up seen in transaction volumes in prime central London over the second half of 2016.