If you’re searching for a barometer of the global economy, you might do worse than investigate the ultra-luxury segment of London’s real estate market.
Prime Central London (PCL) has become a haven for the money of affluent foreigners for several decades, regardless of whether or not they choose to reside there. This resulted in a number of unintended consequences, the most notable being that trophy prices were established, and PCL was largely bordered by vacant buildings.
Because of these exceptional conditions, PCL is again drawing attention as a preferred safe haven for international players seeking to conceal their wealth. Since the opening of the social network giant’s new offices in King’s Cross this year, a small group of Meta executives have purchased real estate in London.
The return to profitability of PCL may be seen in two main ways. First and foremost, both demand and prices are rising. It was challenging to sell the double-basement townhouses that had been approved for a colossal construction plot in a mews in South Kensington in 2014. Yet, despite the recent significant rise in construction cost, there are now many potential buyers chasing each one. A rise in home prices and an increased need for quiet, safe residences are cited as the causes.
The second thing is that there is a veil of secrecy surrounding property about to be put up for sale, which indicates exactly who is staking out the market. It is not a world where information about available homes is shared on so-called “off-market” websites; instead, it is ruled by an underground network of elite real estate brokers. Take Egerton Crescent in exclusive Knightsbridge, for example; at first look, it appears that there are just two residences available (at approximately the £12 million level). A leading buyer’s agent assures me that entry to all 13 is possible with enough connections.
Despite the fact that many people are eager to criticize the United Kingdom at the moment, the factors that make it a secure place to live and work have not changed: Britain’s location on the Greenwich meridian allows for east-west trade, the country is politically stable, it is an island, and it has a strict rule of law. These advantages are re-attracting the world’s elite from London even as the city faces external threats.
