The global real
estate advisor has issued new five-year price forecasts for the capital’s most
expensive postcodes.
Prime
central London price growth is expected to total 15.7% over the five years,
with price falls of just 2.0% in 2020. Price growth will peak at 7.0% in 2022
when Brexit negotiations are expected to be settled.
Despite a
short-lived Boris bounce, valued were 20% below their 2014 peak after more than
five years of almost uninterrupted quarterly price falls, according to Savills’
quarterly index.
“Historically,
prime central London leads the UK recovery, recovering rapidly once prices look
good value on a world stage,” says Lucian Cook, head of residential research,
Savills. “With over £1.1 bn spent in the market over £5m in the first quarter,
some 25% above the average in the preceding five years, we appeared to be at
that point in the cycle immediately pre-Covid.
“But,
despite a noticeable uptick in June, with that figure falling closer to £500m
in the second quarter, it is clear that many overseas buyers are yet to return
to the market though enquiries have picked up dramatically over recent weeks.
Furthermore, the pandemic has chipped away at the wealth of those who buy in
these rarefied markets and, given the impact on the global economy, weakened
the prospects of global wealth generation. So, while we expect London to
continue to attract safe haven investment as the market reopens fully, the rate
of price growth will be slower than in previous upturns.”