Buyers of elite real estate in London is moved from the center to the South-West London

The growth of prices for luxury real estate South-Western part of London, slightly ahead of the growth of prices for luxury housing in the rest of London. According to data provided by real estate Agency Savills, in the second quarter of 2015 the growth of prices for elite real estate of London was 2% in the South-Western part and 1.6% in the rest of the respectively. The most sought-after luxury properties in London in the South-Western part of Fulham to Wimbledon and from Capena to Hema, where over the past 12 months there has been a small 0.8% increase in prices compared to the annual decline that is observed in other parts of London.

The strongest price growth for elite real estate for the year was in the sector of up to £1 million, where buyers have benefited from changes in the scale of Stamp duty introduced in December 2014. However, the growth rate was only 2.1%, because of the difficulty of obtaining mortgage credit continue to hamper many people to get a loan to buy. When buying a property in London costs more than £2 million, buyers are extremely cautious and indecisive, prices in this segment fell by 0.7% for the year.

In the report, Savills noted that was particularly hard hit over the past year the real estate market in Fulham and Battersea, where the price is more expensive than £1.5 million fell in value by 2.5% and 3.5% respectively over the last year. Prices fell due to expectations of introducing a “mansion tax” on the results of the General elections and introduced a new scale of Stamp duty. Although pent-up demand begins to return to the market, the impact of Stamp duty is acutely felt in the moods of the customers.

These causes will slow down the growth of prices and number of transactions in the market until the end of 2015. However, as predicted by Savills, prices for Prime property in London will start to grow again in 2016 and in the coming 5 years will increase by about 22.7% by the end of 2019.

In the rental market of elite real estate of London prices grew by 1.7%. Interest in the lease most be felt from the corporate sector of work, both British and foreign. The most popular areas is considered to be Richmond and Battersea. Many wealthy families resettled from the extremely expensive areas of Kensington and Chelsea in South West part of London, where the price of rent for one square foot of property worth £28 a year, and still lags far behind prices in the Central districts of London. For example, rental prices in the most expensive South West London, Fulham is 42% lower than rental prices in Chelsea.

Overall, Savills predicts a price growth of 17% for luxury housing in London over the next five years.

® Maxim Savitsky. G. 20.08.2015

KNIGHTSBRIDGE, LONDON SW1X – £8,750,000

         MONTPELIER MEWS, KNIGHTSBRIDGE SW7 – £9,500,000

        THE BELVEDERE, CHELSEA HARBOUR SW10

        HANS PLACE, KNIGHTSBRIDGE SW1X – £ 14500000

        BERNERS STREET, FITZROVIA W1T – £1,995,000

        BROMPTON ROAD, KNIGHTSBRIDGE SW3- £1950000

        FITZJAMES AVENUE, WEST KENSINGTON W14 – £ 2,300,000

        IMPERIAL CRESCENT, IMPERIAL WHARF SW6 – £ 4,550,000