The prime central London residential market rose 2.8 percent last quarter

The prime central London residential market rose 2.8 percent last quarter

London's most luxurious properties rose for the sixth consecutive quarter in October to December 2010, confounding agents who are now having to revise up their forecasts for 2011.
According to Savills quarterly prime central London index, property prices rose 2.8% last quarter. The index covers central areas from Mayfair to Holland Park and Chelsea to St John’s Wood.

“The level of price growth this quarter has confounded expectations and our forecast for 2011 now looks bearish,” said Yolande Barnes, head of research at Savills estate agent.

Savills average property transactions in the first quarter of 2011 rose from £3m in 2010 to around £5m, with houses significantly outperforming flats. This reflected a continued surge of wealthy overseas buyers bringing foreign equity in the face of international unrest, Barnes said.

She added that there had been a shift of buyer nationality from Europe to the Middle East and Russians.

Barnes said: “Clearly stable real estate markets like London’s are attracting purchasers in the face of global uncertainty and investment market volatility. Prime central London dwellings can act as a store of global wealth in the face of unexpected global events."