Prices in prestigious London areas could dip as Russians rush to sell homes
Real estate experts have said the impact of sanctions on Russians could lead to a saturated market in some of London’s priciest neighbourhoods.
“While the sanctions against Russia only impact a relatively small pocket of the market, the prime market is one that very much operates on quality over quantity,” according to director of Benham and Reeves, Marc von Grundherr.
Even if just a handful of properties are brought to the market, the market is likely to be saturated in some of London’s most desirable neighbourhoods, von Grundherr added.
“This is sure to have some impact on the price paid for these properties,” he said.
Homeowners may also be forced to reduce prices in the event of seeking a quick sale given the current conflict.
It comes as homebuyer demand across the capital has dropped in the first quarter of the year, according to the estate agent’s calculations.
Current demand across the core prime market currently sits at 25 per cent, down two per cent on the final quarter of 2021, but still some five per cent up year on year.
However, demand for homes with the heaviest price tag is at just four per cent on average. This comes after a five per cent quarterly drop.
Von Grundherr, said: “Take a temperature test of any property market segment during the first quarter of the year and you’re likely to discover it finding its feet after the Christmas break, so a decline in demand so early in the year is certainly no cause for panic.”