Property in London continues to be a hot asset class. In fact, according to a recent report, prime central London property sales have increased by 48% in the past three years.
The information was provided by the property investment platform CapitalRise as well as Savills. The report states that property purchase activity has experienced a “strong post-pandemic recovery.”
Uma Rajah, CEO and co-founder of CapitalRise, explains:
“Today’s data improves the PCL [Prime central London] market’s reputation as an incredibly resilient sector of the property market, which quickly and consistently bounces back from economic downturns. The considerable wealth of buyers and sellers at this point of the market, and the natural constraint on supply are both central to the resilience of the Prime Central London market. While there is concern for the outlook of the wider UK property market, the prospects of the PCL market are much brighter. Indeed, we may see a further boost to the market as the declining value of the pound boosts international investment. Only time will tell, but previous data suggests that the PCL market is well positioned to resist large financial shocks and continue to offer great opportunities.”
The report looks specifically at the change since the first lockdown in March of 2o22. Prime central London property transactions are now above pre-COVID levels.
PCL transactions changed by 48% from H1 2019 to H1 2022, with the total UK transactions up by 9% in the same period. The report claims that there has been a 71% spike in sales of properties valued at over £5m.
The data also indicates that between H1 2019 and H1 2022, transactions in the PCL property market peaked in June 2021, coinciding with the conclusion of the Stamp Duty Land Tax holiday. The PCL market saw an 89% increase in transactions from May to June 2021 alone.
London has long been a hot market for the global wealthy. While the overall property market in London may be in decline, the higher end remains resilient. A separate report from last month states that properties in the £10 million and up segment are seeing robust interest due to pent up demand.
CapitalRise is a specialist prime property finance company that allows individual sophisticated investors to gain access to this asset class. There is a £1000 minimum investment requirement. Since its inception, it has originated over £250 million with zero losses or defaults for investors.