Prime central London growth forecast to outperform other areas
Property group Savills has forecast Prime central London to grow eight per cent in 2022 as wealthy international buyers flock back.
The market is anticipated to grow 23.9 per cent over the next five years while prime outer London will see a hike of 13.7 per cent.
Growth in the market has been subdued because of the pandemic, with international travel restrictions and the pandemic dampening interest from overseas buyers.
Looking ahead, the area – which covers areas including Chelsea and Westminsiter – is expected to outperform all other prime and mainstream markets after a long period of sluggish growth.
Lucian Cook, head of residential research at Savills, said: “After such intensity in the market and without the imperative of a stamp duty holiday, we know that there’ll be less urgency in the market from 2022.”
Price growth in the short-term future is expected to be “somewhat more muted than we have seen of late,” Cook said. This was because of the threat of inflationary pressures and the expectation that the first anticipated interest rate rise will be brought forward.