Despite London’s prime market falling behind the rest of the nation in home price growth, a return to normalcy after the pandemic has resulted in an 11.8% yearly increase in the price paid for apartments on the prime market.
Benham & Reeves, a London lettings and estate company, analyzed London’s prime market by examining the average price paid for flats and mansions in London’s most exclusive neighborhoods and their performance over the last year.
Last year, the average price paid for a home in prime London declined by -5.2% to slightly over £3.343 million. This indicates that people in the market for a bigger family home continue to seek the city’s outskirts and beyond to acquire more significant properties with more excellent outside space.
With the capital’s return to normalcy with the removal of pandemic-related limitations on the workplace, demand from professional and overseas purchasers has again begun to rise.
Last year, the average price paid for a flat in central London climbed by 11.8%, reaching £1.325m.
Average apartment prices in St John’s Wood, Regents Park, and Camden have increased by 42.5% yearly over the last year.
Knightsbridge and Belgravia not only have the highest average apartment price, at £3.125 million but also the second-largest yearly increase in value, at 41.5%.
The average price of a flat in the third-ranked neighborhood of Kensington, Notting Hill, and Holland Park increased by 37.3% last year.
Mayfair and St. James’s (-10.8%), Fitzrovia, Bloomsbury, and Soho (-5.9%), and Midtown, City, and City Fringe (-2%) are the only places where the price paid for a great London flat has declined over the last year.
Director of Benham and Reeves, Marc von Grundherr, said, “It’s fair to say that the London market has been humming along, and although property prices haven’t risen at the same pace as the rest of the UK, it’s been a gradual but steady return to health after the epidemic.
“Pandemic workplace restrictions especially heavily struck central London, and this significantly influenced buyer appetites throughout the top market.
“However, we’ve seen a change in market momentum over the last few months in both top neighborhoods and central London as a whole, driven by an increase in demand from professional and overseas purchasers.
Consequently, there has been a massive rise in the price paid for premium London flats of outstanding quality.
