“The general consensus is that price growth will be pretty flat this year but over the next five years, Prime Central London should outperform the rest of the market as price growth has been subdued over the last ten years,” says Katherine O’Shea, director of Coutts Real Estate Investment team.
Despite a 3.9% drop in prices in the first quarter, there are definitely some strong indicators that 2024 will be a better year Prime London property than 2023. “We’ve seen increased demand from those that wanted to move in 2023 but held back due to rising inflation and rising interest rates. And Prime Central London in particular is long overdue a rebound,” says Katherine.
More listings and faster sales are positive indicators for increased market activity. “We can see from the data that some parts of the capital look extremely cheap relative to historic prices. That said, we know from the agents on our panel that there is increasing demand for ‘best-in-class turn-key’ properties. Combined with the low supply, this means buyers are often having to pay asking or above asking price to secure their desired property.” says Katherine.