Figures for the first quarter in London have seen prices rise by as much as 50% for Prime Central Property in the capital, according to new research from Savills.
Demand is being driven by the international super rich, many of whom want a top-end property in London, and are prepared to pay extremely high prices for what they want when it comes onto the market, says the report.
‘London has now assumed the position of the real estate capital of the world,’ said Lucian Cook, from Savills. ‘Demand is coming from a wide range of sources at this end of the market with, for example, the Chinese and Indians now vying with western Europeans, UK and Russian buyers for these premium properties.’
Savills found prices rising across all brackets in Prime Central London, with growth for the first quarter at 8.8%, and year-on-year growth of 27.5%.
‘There is growth right across the price bands: a £1m property has increased in value by £900 per day in London since the beginning of the year,’ Mr Cook continued.
As a result, Savills are considering readjusting their forecast for annual house price growth for this year: ‘Whilst many commentators considered our forecast of 15% growth to be bullish at the end of last year, the signs are that, unless there is a real change in our current market conditions it will turn out to be conservative and we may be forced to review our forecast,’ concluded Mr Cook.