Demand for properties in central London has been steadily rising throughout 2021, with a 22% increase in offers in October 2021 alone compared with the previous month. Agreed sales also shot up 26% in the same comparison period. As a result, prices for one and two-bedroom properties in London’s prime central position continue to skyrocket.
According to Walter Soriano of W.S London Management, as people become priced out of prime central London locations, other under-appreciated city areas start to gain value. This ultimately has a ripple effect on London’s outer neighbourhoods. Soriano also highlights that one and two-bed properties remain popular investment opportunities, which means prospective buyers compete with seasoned investors.
According to Knight Frank research, property prices in Central London rose 1.1% between the beginning of 2021 and September. According to Soriano, part of the increase is being driven by the return of wealthy buyers, as Covid-19 restrictions ease. The return of such a large number of people ultimately affects demand, which further affects prices. Property prices in Central London Currently, the average sold price in Central London stands at approximately £1.74mn. The London average stood at an impressive £516,285 in October 2021, a 1.9% rise compared to the previous month. Prices are expected to rise 5% in 2022 and some 23.9% over the next five years.
Despite these increases, Soriano highlights that Central London property continues to be fantastic value for buyers. This is because despite prices rising, they’re still 20% below the peak of 2014. Which means there’s plenty of value to extract. Experienced UK investors and buyers will have identified these opportunities, whilst foreign buyers create further competition as they return to London post-Covid. What to expect from prime Central London property prices in 2022? According to Soriano, Central London property could very well surpass the rest of the country in terms of price increases.
The much sought-after area is earmarked for an incredible bounce back next year, after a difficult number of years where numerous buyers looked outside the city for more space. Soriano also highlights the need for savvy investors. The city operates as an umbrella where specific types of homes in certain areas have more value and make for better investments. Identifying these opportunities is crucial to successful property investment in Central London.