Will House Prices in Prime Central London Stay Up or Go Down This Year

London real estate market has always been under scrutiny across the world, known for its steep prices and profitable property. Prices of prime central London residential property have seen an upward trend by 53% as compared to 2009 March. The last time the real estate market was at peak was in March 2008, and the prices now are 16.5% higher than that also!! Now that’s quite a significant increase.
So, looking at the global trends in the property market, Jakarta Beijing and Hong Kong, are the only few global cities which have surpassed London’s growth pattern in property price since the financial dip of early 2009. Surprisingly, the main international property investors in London real estate hail from Russia, US, Italy, India, and France.

As such, London’s all areas are performing well in terms of price growth but the prime area of South Kensington has been the leader in attracting international buyers in 2012. At the same time, Kensington, Hyde Park, Knightsbridge, and Belgravia are still consistent in their popularity among affluent foreign buyers who are interested in putting their wealth into a safe investment haven.
Trends show that the ratio in which over a million pounds’ property sales in London to non UK buyers has increased from 51% to 60% for properties priced over £5 million. If you plan to invest into London property, then this is a good time. But report show that London price growth is good now, however, is likely to stay muted for some time.
Also, London’s lettings market has seen a rough year as compared to the residential property sales sector. The rents were consistently growing for a long period throughout 2011, however, in 10 out of the 12 months in the year 2012, the rental prices have seen a decline. That’s good news for tenants.
Ultimately, it is London’s employment sector which largely affects the property trends within London. A recovery is expected in the lettings market especially only when significant improvements happen in the employment sector of London.
Finally, speculation has it that the property prices which have seen an upward trend until now, may stay stable for some time and the rents are not expected to go up further. Nonetheless, investment in London property is never unsafe as such.