Prime central london property market activity picks up

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During almost six weeks of the Olympic and Paralympic Games in London, the amount of people out looking at property fell as many Britons spent time watching sporting events instead.

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  • 1. Prime Central London Property Market Activity Picks-UpDuring almost six weeks of the Olympic and Paralympic Games in London, the amount ofpeople out looking at property fell as many Britons spent time watching sporting eventsinstead.Research conducted by the Royal Institute of Chartered Surveyors reveals that during theOlympic Games nine per cent more surveyors reported falls in demand, in comparison tofour per cent in July, illustrating the fact that Olympics was a genuine distraction forpotential buyers.Understandably, the amount of people out looking at property fell away slightly, said IanPerry of the Royal Institute of Chartered Surveyors.However, with Londons golden summer now a fading memory, more people have turnedtheir attentions back to property resulting in greater activity, particularly in the primeCentral London property market.The latest Cluttons Residential Investment Monitor report reveals that activity in the primeCentral London property market has increased significantly since the Olympic Gamesended helping to push property values higher.Cluttons report that average home prices across London increased by 3.1 per cent duringthe third quarter of this year, after a more modest increase of 0.9 per cent in the secondquarter. This healthy growth leaves average property values in prime Central London 3.33per cent higher than the third quarter of the 2007 market peak and 7.1 per cent higherthan the corresponding period last year.Research shows that property for sale in Fitzrovia, Mayfair, Marylebone, Hyde Park,among other prime areas are of particular interest as far as purchasers are concerned.Demand for flats and houses for sale in Fitzrovia, Mayfair, Marylebone and Hyde Park isparticularly high among international purchasers

2. Investors from India, Western Europe, Russia and other Eastern European countries areincreasingly focussing on properties in these areas, illustrating that foreign investors havebecome the dominant force in the London property market.The increase [in prime central London property prices] is the highest in the UK by a verylong way, and justifies the interest in prime central London that has been shown byinvestors from around the world through the thick of the global financial crisis, saidAndrew Ellinas of leading estate agents Sandfords.But despite the hike in property values, prime central London rental values havesomewhat stabilised, and in some cases have even dipped, as unemployment and therecent Olympic Games all contributed to a general market slowdown.The latest analysis from the property adviser Savills shows that small falls were seen inprime central London rents, following a slight decline in demand for property to rent inFitzrovia, Mayfair, Kensington, along with a host of other highly desirable centrallylocated areas.The decline in the volume of people renting was driven by a weakening of economicindicators and the employment outlook in the financial and business services.Sophie Chick, Savills research analyst, said: Constrained budgets means tenants areincreasingly aware of the cost of space, a trend we believe will continue.Despite a slight fall in prime London rental demand, most experts expect activity to pickup again now that the UK is moving out of recession.

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