Demand For New Flats In PCL Spikes
The Prime Central London (PCL) flats regain appeal among property hunters, hitting pre-pandemic levels.
New market insights suggest demand for PCL flats is back as international buyers continue entering the London property market while the appeal of city living becomes popular again.
New Flats In London Zone 1
In Q4 2022, the share of flat sales in Prime Central London reached 74%, a record-high level over the past three years. Undoubtedly, this trend has benefitted markets where flats are the prevalent property type for sale.
South Kensington enjoyed the most significant property price growth between January 2022 and 2023, with figures rising by 5.5%. Knightsbridge came second, with similar growth numbers hitting 4.5%.
Industry Comments
Several experts highlight the return of international buyers into PCL and the fact that average property prices for flats have remained relatively silent. As a result, demand and average flat values started to rise in late 2022.
Moreover, the market activity in super-prime neighbourhoods like Belgravia, Mayfair, and Knightsbridge was 55% above the levels seen in 2020 when the pandemic hit. As a whole, PCL areas enjoyed a 40% spike in market activity, proving the resilience of luxury property in London.
PCL Market Outlooks
Despite the prime property market in London adjusting to the changing market landscape in late 2022, it performed well above the averages in early 2023. Experts anticipate demand and price growth levels in PCL to outperform the rest of London and the UK in the coming years as more international buyers enter the market, driven by favourable prices.
Average prices in Prime Central London are still 15% below the peaks in 2015, meaning market settings remain attractive. As a result, the recent residential property trends in London are hardly surprising.
