Property in the £5million plus bracket in Prime Central London has shown a 50% growth in value during the past 12 months, according to the latest research published by Savills.
Lucian Cook, Director of Savills Research, said: “London now has assumed the position of the real estate capital of the world with an increasingly footloose international community of the super rich competing to buy rare properties. Demand is coming from a wide range of sources at this end of the market with, for example, the Chinese and Indians now vying with western Europeans, UK and Russian buyers for these premium properties.
Across all price brackets in Prime Central London, growth for the first quarter of the year alone was 8.8%, which equates to year on year growth of just over 27.5%.
Cook said: “Whilst as a general rule of thumb the more expensive the house, the greater the increase in value, there is growth right across price bands. By way of example, a £1m property has increased in value by some £900 per day in prime central London since the beginning of the year”.
As a result, Savills now expect their forecast for annual house price growth in Prime Central London for this year could be exceeded.
Cook added: “Whilst many commentators considered our forecast of 15% growth to be bullish at the end of last year, the signs are that, unless there is a real change in current market conditions it will turn out be conservative and we may be forced to review our forecast.”
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