There’s no denying that Brexit has led to uncertainty in the UK property market. The initial effects can be seen with a certain amount of hesitancy among investors, and while it may be that many continue to wait out 2017, it’s interesting to see the current status of the London luxury property market.
So far Brexit has been a double-sided coin. On the one hand, European buyers have become more hesitant, but at the same time the pound has plunged making it more attractive. There is also a lot of arguments for affordable housing. Meanwhile, what does this all mean specifically for London’s microcosm of luxury property for this year?
Exciting new London developments
Properties that are priced at over £10 million are known as super-prime new builds. In 2016, sales of these kinds of properties collapsed by around 86 per cent. However, there is every chance that the weakening of the Euro may well encourage overseas investors to see London as a safe place to put their money.
An example of the kind of developments that might tempt overseas investors is Clarges Mayfair. This Piccadilly based project will complete towards the end of 2017, and prices paid so far for the apartments have been higher than Mayfair, with an average price of £4,720 per square foot. The apartments are close to Green Park and have a view over Buckingham Palace and will also have access to a private spa.
Over in Canary Wharf, developments are relatively more accessible in terms of value when compared to central London. One Park Drive will open in 2017. This 58-storey development is designed by Herzog & De Meuron and is right next to the Crossrail station, set to open in 2018.
The third phase of the BBC TV Centre development in Shepherds Bush will also happen this year. The iconic building will be transformed into luxurious apartments, with prices set to be towards £1,500 per sq ft.
Upcoming areas in London
Fitzrovia’s credentials as the place to be, build and buy was marked when Facebook decided to move their offices in this year. There are five Michelin starred restaurants on their doorstep, and there will be easy access to Crossrail from next year. Fitzrovia has finally joined Marylebone and Mayfair as a recognisably glamorous area, as well as the tech vibe from the number of companies in the area.
The area between The Strand and Holborn has also become re-energised, thanks to new developments like Lincoln Square (Lodha UK) and 190 The Strand (Berkeley St Edwards). These luxury developments are proving popular with buyers from the barristers’ chambers and law courts nearby.
It seems that despite economic uncertainty, London is still very much a hotspot for overseas and home based investors for luxury, high end developments.
Samir Salya
Samir Salya is the Chairman of Reign Holdings and is involved in real estate and construction within the UAE and UK. Samir holds over 20 years of experience in executive management, business expansion, performance improvement, sales and marketing.