Top London property sees price divergence
Tuesday, 18 October 2011 11:13 AM
The booming market for prime central London property conceals huge variations in market performance, according to a study by Savills.
The estate agent said values of prime central London resale properties had risen by an average of 87 per cent over the volatile period of the last six years, compared to just 25 per cent for mainstream properties in the capital.
However, the top 10 per cent of prime central London real estate has risen by 151 per cent over the six years and by 57 per cent since the bottom of the market in March 2009.
In contrast, the bottom 10 per cent has risen by 42 per cent over the six years and 34 per cent since March 2009.
Mayfair has seen the highest average growth over the last six years (117 per cent) followed by Marylebone (107 per cent) and Knightsbridge (93 per cent).
However, Knightsbridge remains the most expensive area judged by size with an average price of £2,007 per square foot.
"This analysis suggests that investors in prime central London need to look beyond the headline averages for real comparables in order to understand value," said Lucian Cook, director of Savills research. "The extent of the divergence in performance is too big to ignore."
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