Given the recent increase in the number of cash purchasers registering to acquire property in the city’s heart, Carter Jonas forecasts that 2023 will be an extraordinary year for the prime central London (PCL) market.
Many recent purchasers in the Marylebone and Mayfair offices are American citizens taking advantage of favorable exchange rates to purchase in the heart of London with cash.
According to Carter Jonas, the central London real estate market is expected to outperform the rest of London and the UK in the next months due to the influx of foreign Dollar purchasers from the United States, the Middle East, and Asia looking to take advantage of the weak pound.
We expect 2023 to be a very excellent year for the premier London property market,” said Samuel Richardson, head of sales at Carter Jonas in Marylebone and Mayfair. UK real estate was 25% cheaper for these purchasers at the end of September this year compared to June 2021, and we anticipate this tendency to continue. In the third and final quarter of 2022, eighty percent of our customers who made purchases via our Marylebone office in central London were not British. Half of the purchasers have been purchasing with dollars, with buyers from the US leading the way, followed by those from the Middle East and Singapore. Californians accounted for 90% of American purchasers.
The top central London boroughs will still be hot commodities for investors in 2018. These investors are buying in Mayfair, Marylebone, Kensington, and Chelsea with cash. Thus these neighborhoods are expected to outperform the rest of London’s markets.
Those who have purchased in the area in the last few years will feel the effects of the interest rate increase the most. Because of this, home prices may fall as fewer individuals hold on to their properties.
Richardson said, “I am pretty positive that prime central London will surpass all other London districts in 2023. Even if there is still a significant demand and shortage of rental properties, investors will return to the market due to the rising rental market and the improved rental returns it offers. As a result, astute investors can take advantage of discounts offered by eager developers to sell the last available apartments in new construction projects to cash purchasers.
Buyers come from a wide range of backgrounds: wealthy foreigners and locals looking to invest in London’s hot real estate market to parents seeking a place for their children to live while they attend university. Many people are starting families and seeking homes they can stay in for the long haul. These customers are willing to pay £800,000+, often spending between £50,000,000 and £70,000,000+.
In my opinion, Prime central London will outperform the rest of London next year if the dollar continues high. Because of the strong demand and rising rental market, investors will be attracted by the favorable exchange rates.
