Resi development in central London \u201ccontinues to escalate\u201d says JLL, with the number of units under construction now only just shy of 22,000 \u2013 up 15% during the first half of 2014, and double the total of two years earlier. But building patterns seem to be changing in the capital\u2026<\/p>\n
The number of new unit sales across PCL has increased by 4% during the first half of 2014, while prices continue to rise with annual growth at 13.7%. But \u201csome of the heat has come out of the market as buyers have become more discerning through the summer months,\u201d says JLL, which argues that \u201cthe market is now in a more stable and sustainable place.\u201d<\/p>\n
One of the key trends that the agency flags in its latest Central London Residential Development Report is \u201cmoving out\u201d: \u201cThere is now a notable bias in favour of \u2018Outer Core\u2019 locations compared with \u2018Core\u2019 or Prime Central London markets,\u201d it says, with price growth, sales activity, development volumes and developer preferences all looking outside the traditional PCL homeland.<\/p>\n
JLL is forecasting that price growth in central London developments calm a touch to 8% pa by the end of this year, and notching back again to 6% in 2015. Completions look to be pushing towards 10,000 units in 2015, the highest level since 2008.<\/p>\n
Neil Chegwidden, Research Director in the residential team at JLL: \u201cThe Central London residential development market remains robust, underpinned by an occupational demand still unmatched by supply and continuing domestic and international interest.\u201d<\/p>\n
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