London’s luxury home hunters have a collective of £ 36.8bn to spend
London‘s super-prime real estate market, with growing demand for its most luxurious homes and buyers with billions of pounds in their collective pockets to spend, is on the road to recovery, according to a report released Monday by Knight Frank .
Following a Covid-induced collapse that saw the real estate market effectively shut down amid the pandemic, buyers with a combined £ 36.8 billion (US $ 51.2 billion) budget are looking for now actively prime houses in London, a 54% jump from the five-year average, according to the latest data from the estate agency and property consultant.
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“The London super-bounty market is seeing a resurgence of interest,” said Liam Bailey, global head of research at Knight Frank, in the report, which defines super-bounties as homes priced over $ 10 million. pound sterling. “A combination of an easing of the foreclosure, a rapidly growing economy, a markedly improved entrepreneurial sense and a sense that city life is rekindled after a long shutdown is helping to stimulate buyers. “
In the six months to the end of April, buyers parted with £ 817.4million in 45 super-prime deals in London, a 21% jump from the £ 677.9million spent on 43 upscale properties in town in the past six months. month.
“While the figure represents growth in new demand from new UK and international buyers, there is also growth in demand from existing luxury home owners looking to buy a new, higher quality, bigger and better home. to improve and expand their London base. , in response to the impact of Covid on their way of life, ”added Mr. Bailey.
The most requested area over the past 12 months was chic Kensington, where 18.6% of super-prime deals took place; Knightsbridge and Mayfair round out the top three.
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Outside the main London market, the UK average asking price hit a record high for the third month in a row in June, hitting £ 336,073, according to the latest price index released Monday by Rightmove.
Despite the record, the feverish UK property market, supported by tax breaks, lifestyle changes and a desire for more square meters and outdoor space, appears to be showing the first signs of cooling, said the online real estate portal.
Compared to last month, prices rose only 0.8% in June, a much smaller increase than the 1.8% monthly increase recorded in May and the 2.1% increase recorded in April.