Eurozone Drives Property Market Growth in Central London

Eurozone Drives Property Market Growth in Central London

The Central London residential property market has certainly shown clear signs of strengthening in recent months, with a 78% rise in instructions in the first quarter of 2012.

That growth, in the main, is being driven by increased demand from international buyers, particularly those within the Eurozone.

Here are some specific examples of that Central London growth;

Average prices up 7% in 2011

• Based on current prices, a further 7% rise is projected throughout 2012

• 3.7% increase in average rental prices

• 68% of rental properties let to international tenants

In one Covent Garden property, an apartment at Capco’s The Henrietta scheme, recently achieved the record price of £2,676 per square foot!

Now, as we move further into 2012 and experience more of the Eurozone turbulence (currently affecting Spain and Greece), the Central London property market is increasingly going to be viewed as a safer haven for European money.

So to reiterate, what we’re seeing is strong demand from potential Eurozone buyers, combined with increased demand from domestic buyers, which is leading to this strengthening in prices.

The split in the first quarter of 2012 was 56% of purchases made by international buyers and 36% of all purchases made by buyers from the Eurozone.

Domestic buyers dominated the resale market, but only accounted for 20% of the new build purchases, where the international interest is far stronger at present. Investment purchases made up 38% of the total purchases during this period.

So whilst improvement in conditions across the Eurozone is desired, the link between the turbulent economy and rise in Central London property prices seems to be in little doubt.

Ok, we hope you enjoyed this post and if you have any questions about selling or buying a Central London property, the Kubie Gold team are on hand to help and advise you.

You can reach us on 020 7563 7272, where you’ll receive prompt, accurate and professional property advice.

Speak soon.