Are luxury properties in Prime Central London a good investment?
Property prices in Prime Central London (PCL) grew 8.1% in the year to February 20221, compared to Hong Kong, where residential property prices declined by 2.9%, to their lowest since January 20212. Hong Kong was also ranked as the least affordable housing market 3 by Demographia, which assesses house prices in relation to income across 92 major housing markets in eight world nations4.
Prime Central London outperforms many major international markets
While house price growth in the UK in the year to February 2022 was strongest in Wales - with growth of 14.2%, London property prices continued to increase at a strong rate (8.1%) and England’s capital city still boasts unrivalled attractions across the six Prime Central London locations.
As well as boasting strong post-pandemic growth, Prime Central London real estate has proven to be a less volatile investment than Hong Kong’s, for example, during periods of financial crisis. According to a recent article, quoting house price drops during the 2008 credit crunch, London property prices dropped 11%, compared to 50% in Hong Kong and 77% in Singapore5.
PCL property prices are strong and growing compared to previous years
Our quarterly research shows that residential property prices in Prime Central London were up 0.6% in Q1 2022, compared to Q4 2021, and achieving prices that are 4.7% more than in Q1 2020. Luxury London properties listed for between £2milion and £5million saw particularly strength growth, with sales up 25% year on year.
The figures speak for themselves, but what are the non-financial benefits of investing in London?
The benefits of buying Prime Central London: A quick area overview
When it comes to investing in luxury London property, are you looking to own and occupy or buy to let? Your investment intentions will inform the best area to buy in and the right type of property for you.
Here’s a quick area overview of the six Prime Central London locations.
Knightsbridge
Possibly the most iconic of the six Prime Central London locations, Knightsbridge is home to a selection of high-end townhouses, unique mews properties, and luxury flats, all within touching distance of the luxury, opulence, and history of landmarks like Harrods, the V&A, and the London Oratory.
Kensington & Chelsea
A designer shopper’s paradise, the London Borough of Kensington and Chelsea boasts stunning detached family homes and spacious terraces, all on the doorstep of the high-end boutiques and designer flagship stores lining the Kings Road and Sloane Square.
Luxury dining at the Borough’s Michelin-starred restaurants (Bibendum, Elystan Street, and Kitchen W8) means you’re spoilt for choice when it comes to fine dining. Properties in this area are also walking distance to the Saatchi Gallery, Chelsea Physic Garden, and Chelsea Embankment Gardens. Luxury properties in Kensington and Chelsea offer a feeling of space, opulence, and community within Prime Central London.
Mayfair
Featuring high ceilings and a true feeling of space, Mayfair’s luxury flats often sit within stunning period properties that have been sympathetically converted to the highest specifications.
New build developments in Mayfair also put you close to some of London’s most famous streets, sights, and shopping. From the designer flagship stores along Bond Street and the quintessentially British tailoring on Savile Row, to outdoor living at Hyde Park, and fine dining at Claridge’s and Browns, owning a property in Mayfair will give you the very best of city London.
Marylebone
London is a collection of distinctive areas, each one boasting a unique character. Marylebone has built up a real village-like feel right at the heart of the action. Its streets are lined with al-fresco dining spots and independent retailers, and with fascinating art on show at the Wallace Collection, a Marylebone property is one for food lovers, those in search of unique boutique spots, and art collectors alike.
The area is perfect if you’re looking to invest in the best of London period property, updated to the very highest standards for modern living.
Belgravia
Luxury flats and terraced houses on quiet squares, Belgravia’s beautiful residential north to south streets connect Hyde Park to Chelsea Embankment, while its east to west properties join up Chelsea and Westminster.
Home to perhaps Peggy Porschen Cakes – perhaps the London food scene’s most Instagrammable exterior, as well as to a whole host of other beautiful, independent boutiques and eateries, Belgravia feels typically London and is popular among working professionals with second properties outside of the capital.
Westminster
Westminster is all about incredible views of iconic landmarks. Home to stunning penthouse apartments close to Westminster Abbey, the Houses of Parliament, Buckingham Palace, and St James’ Park, Westminster offers riverside views and London living at its best.
London is the home of luxury living with properties right at the heart of the action. Prime Central London offers the perfect mix of leafy green parks, river views, iconic landmarks, and opulent retail, dining, and cultural experiences, for the discerning buyer.
Discuss your property portfolio objectives with our Prime Central London experts and we will uncover the right luxury property for you.
1 https://www.gov.uk/government/news/uk-house-price-index-for-february-2022
3 http://www.demographia.com/dhi.pdf
4The study assesses house prices in relation to income in 92 major housing markets across eight nations – 1. Australia 2. Canada 3. China 4. Ireland 5. New Zealand 6. Singapore 7. The United Kingdom 8. The United States. http://www.demographia.com/dhi.pdf
5 https://www.habitatinvestments.co.uk/prime-central-london-remains-one-of-the-best-global-real-estate-investments-it-is-claimed/
