Prime central London residential house prices could grow another 6% this year, says a new forecast.
According to CBRE, average house prices in prime central London have increased by 35% over the last three years and are now 16% above their 2007 peak.
The global real estate consultancy says London can only be matched by Monaco and Hong Kong in terms of new-build property prices, with prime homes typically selling for between £1,500 and £2,500 ($2,000-$3,800) per sq ft and exclusive super prime properties selling for in excess of £3,000 ($5,000) per sq ft.
Mark Collins, Head of Residential at CBRE, said: “Super-prime residential markets have emerged as one of the only secure investment options for the world’s super-wealthy.
"The very top end of the market remains exclusive, involving only a handful of cities, and within this elite group London is still one of the most compelling choices.
“As well as its position as an important financial and cultural destination, London’s time-zone, infrastructure, education system and the language make it the top choice location for a trophy asset.”
Collins added: “London’s limited source of developable land means that supply will almost never satisfy demand.
“Design and architecture are important, but most extremely wealthy home buyers will now not even consider a scheme without state-of-the-art security and a comprehensive concierge service, ideally from a well-known luxury brand, because they need to know that they are getting the very best money can buy.”
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