London’s real estate market seems to be stabilizing after declines in the past two years. Prime central London’s average prices dropped by about 1% in the year to February, whereas prices in the city dropped by 7.0% between August 2015 and February 2017. The neighborhoods have been noticing moderate to strong growth, and there have been more high-end transactions showing that buyers are no longer as hesitant as they were before to make offers. In addition, rental values are dropping around the London area and are thought to be bottoming out.
- London’s market appears to be gaining some stability as shown by lower average prices and strong growth in London’s neighborhoods.
- A drop in home values seems to have encouraged more buyers to purchase homes, especially those in the market for real estate priced at and above £5 million (US $6.88 million).
- Recent data shows that rental prices are dropping in prime central London, as well, with a drop of 2.1% in average rental values.
Average prices in prime central London fell by approximately 1% in the year to February. It points to further evidence that pricing in the capital appears to have stabilized following steeper declines over the last two years, the report said.
Neighborhoods in the city recorded varying performances in the past year, with the strongest growth logged in Marylebone (3.5%), likely due to the area’s high-quality new-build pipeline and relative renaissance, the report said.
High-end buyers have been seen taking advantage of slightly lower prices in the city. In Chelsea for example, a recent uptick in transactions priced at £5 million (US$6.88 million) and above is thought to be the result of a 15.6% drop in home values in the area between August 2015 and February 2017, according to Knight Frank.
Average rental values in prime central London fell 2.1% in the year to February—marking two years of annual rental value declines—though compared to the decline of 5.1% recorded in February last year, the numbers underline how rental values are bottoming out, Knight Frank said.
View the original article at Mansion Global