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High value Prime Central London

Prime Central London

Prime Central London

It is apparent that the Eurozone crisis and David Cameron’s protectionist stance with regard to the City and financial services industry has provoked strong interest in high value Prime Central London property. 
We have seen over the last two weeks an unusual amount of activity at the top of the market from both Russian and European investors anxious to take advantage of our weak currency and the perceived stability of Central London.

Stock levels are now perilously low across all price bands and agents are reporting very few new instructions.  In these last few days prior to Christmas we are hoping to exchange on over £50 million pounds worth of property which is indicative both of our market share and the continued attractiveness to investors of Knightsbridge, Chelsea and Belgravia.

We predict that whilst turnover will be relatively low during 2012, due to vendors retaining property in the hope of long term growth, prices will remain strong and a rise of between 3 and 5 per cent is not an unrealistic expectation particularly within the super prime market.

Interestingly, as we have said over the last couple of weeks, rents have plateaued and statistics are now proving this change in the rental market conditions.  Rents have seen their first fall in 10 months and there is more stock coming on to the market in Prime Central London.  Some Landlords are prepared to take a marginal reduction in order to minimise a void period and this is also the case on renewals.  Some of our clients are taking a minimal increase depending on their current rent so as to keep their tenants in situ.

As we have said before, we are saying this with a degree of caution as historically this time of year is quiet in the lettings market and we will only know if rents are on a marginal decline in January, theoretically one of the busiest months in the lettings calendar.

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