Residential real estate prices in central London are expected to breach the GBP100,000 (USD167,000) per sqm in the next six months, according to the Spring 2014 Ultra Prime Market Insights survey.<\/p>\n
Based on data compiled by super-prime property consultancy firm Beauchamp Estates in the past year through April 2014, ultra prime central London (PCL) home prices have increased in each of the central neighbourhoods, namely Knightsbridge, Belgravia, Mayfair, Kensington, Chelsea and St. John\u2019s Wood.<\/p>\n
In that period, 214 out of 1,467 high-end units sold in PCL were priced at least GBP5 million (USD8.36 million). Analysts predict that home prices could reach as much as GBP108,000 (USD180,000) per sqm for a \u201cperfectly presented super-prime property\u201d, surpassing the record set by an unfurnished penthouse at One Hyde Park in Knightsbridge, which was acquired for an estimated GBP140 million (USD237 million) or an average of GBP93,333 (USD158,000) per sqm.<\/p>\n
The spring survey also states that although \u201cthe super-prime market is product rather than area driven,\u201d Belgravia is catching up quickly due to strong demand and the quality of residences within the district, with a reported 16.3 percent price increase, year-on-year, in Q1 2014.<\/p>\n
\u201cWhilst Knightsbridge remains London\u2019s most expensive residential address Belgravia is making a very good case for stealing the crown,\u201d said Penelope Court, a partner at Mayfair-based Beauchamp Estates. \u201cThe district is now hitting prices previously only achieved in Knightsbridge and demand from both domestic and overseas purchasers remains very strong in the district.\u201d<\/p>\n
She added that the average sales price in Belgravia last quarter was GBP3.49 million (USD5.84 million) and the number of sold properties valued at GBP5 million (USD8.36 million) or higher rose by 69 percent compared to the same period in 2013. But the other districts will not be left behind as the global demand for ultra-prime London properties is still rising.<\/p>\n
Beauchamp Estates partner Gary Hersham states that \u201cconfidence in the London economy is strong and it is forecast to grow by another 3.2 percent by the end of 2014. The capital\u2019s property market is outperforming those of rival world cities and London is therefore seen as a lucrative destination for global wealth and investment.\u201d<\/p>\n
According to Knight Frank\u2019s 2014 Wealth Report, London is the world\u2019s most preferred investment destination because of its diversity and huge population of ultra high net worth individuals (UHNWIs). London was also named the world\u2019s smartest city behind Tokyo for the third consecutive year by the Cities in Motion Index.<\/p>\n
London\u2019s ultra-prime properties cater to the city\u2019s growing population of UHNWIs, comprising tycoons from the Commonwealth of Independent States region (Ukraine, Russia, Khazakhstan, Azerbaijan and Georgia), continental Europe (especially Italy), North America, the Middle East and China, who have collectively purchased some GBP2 billion (USD3.34 billion) worth of central London-based luxury homes in the last two years.<\/p>\n
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