The London super-prime (£10 million-plus) market is reviving following a 12-month hiatus caused by the worldwide pandemic. The combination of rising demand and a scarcity of super-prime homes has led in a record yearly price increase in May 2021 for the first time since mid-2016. According to Knight Frank, as the UK economy recovers from the epidemic, Indian purchasers have missed out on effective discounts of 2.73 percent when compared to the currency depreciation for the period Dec-2020.
According to Knight Frank’s newest research, ‘London: Super Prime Market Insight for Spring 2021,’ Euro and Swiss Franc currency holders received the biggest discount of around 25 percent – 27 percent apiece, in December 2020. In comparison, the INR was at its lowest throughout the time, ranging from 15% to -17%. With market volatility and currency depreciation, discount rates have been considerably decreased. While the Euro and Swiss Franc currencies fell by 20% to 25%, the Indian Rupee fell by 10% to 12% in May 2021.
The Spring 2021 Super Prime Market Insight analyses sales volume and value in London’s super-prime (£10 million-plus) market. From April 2020 to April 2021, London’s SW1, which includes buildings such as The Hinduja Group’s The OWO Residency, saw the most sales in terms of value and volume, with 18 super-prime homes totalling £ 392 million changing hands.
The research identifies a change in buyer attitude toward home/standalone properties over flats/apartments in the super-prime (£10 million-plus) market. In comparison to 2017, when home sales accounted for 56 percent of the super-prime market and apartments accounted for 44 percent, January to April sales statistics reveal that houses account for over 3/4th of super-prime market sales.
Shishir Baijal, Chairman and Managing Director at Knight Frank India, commented on the matter, saying, “London’s super-prime market is now experiencing a boom, thanks largely to increased demand.” In recent years, the value of London’s Super Prime and Prime homes has increased. During the pandemic, many Indian HNIs showed a greater interest in purchasing prime properties in gateway markets such as London, as these markets have historically either outperformed market trends during economic slowdowns or recovered at a faster rate than others due to strong fundamentals and robust global connectivity.”
Highlights include:
- In the six months to the end of April, £817.4 million was spent on London super-prime property, a sum that was 21% more than the previous six-month total of £677.9 million.
- In May 2021, the number of new prospective super-prime purchasers was 150 percent greater than in January 2020. During the same time period, the number of new property listings in the price range decreased by 25% as owners hesitated in the face of the epidemic.
- According to the 12-month rolling average, there were 8.7 percent of new purchasers for every new super-prime property placed for sale in May 2021. This was the highest level in seven years.
- In the year to May, average super-prime prices rose 0.6 percent, the first gain in more than three years.
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