The real estate market of Central London has almost reached tipping point

The growing gap between supply and demand on the market of elite real estate in Central London, economic uncertainty and the threat of high inflation is likely to lead to a decrease in property prices this year.

Analysis from estate Agency Cluttons that by the end of 2017 prices in the market of elite real estate of London will fall by 0.7% and, after the establishment of balance, prices will start to rise in 2018 , showing an increase of about 1%.

In the period when will be negotiating the UK’s exit from the European Union, housing prices in Central London are also likely to grow rapidly – it is expected the growth of prices at the level of 2% to 3% between 2019 and 2021. However, it is expected that the aggregate increase in prices by the end of 2021 8.6%, which, of course, is much less than the 30% growth in the previous five years.

Consider what changes in the property market are expected in specific areas of Central London. Company Cluttons says that the prices in areas such as Westminster, St John’s Wood, Regent’s Park, Hampstead, Battersea, Clapham, Wandsworth and the South Bank , will remain unchanged until the end of the year.

A small price increase is expected in South Kensington 2.1% to the end of the year, in Knightsbridge by 1.3% , in Chelsea by 1%. In the City, the price may rise 1.4% in Farringdon and Wimbledon 1.8% Richmond 1.3% in Dulwich by 2.7%.

The fall in prices is expected in Marylebone 2.3% until the end of the year, Notting Hill is 1.9%, in Kensington 1.6% in Hyde Park at 1.3%, in the Nine Elms 1.9% in Wapping and Mayfair 0.8% in Holland Park 1.4%.

Despite continued very weak growth in prices can certainly say that the market is close to a tipping point and we should not expect further large price declines. Interest in the London property investors from the Middle and Far East, encouraged by a weak pound and attractive offers.

® Alice Morgan 02.06.2017 G.

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