The price of land in central London soared almost a fifth last year in a dramatic bounce-back from the post-Lehmans slump.
The value of residential development land rose 3.2 per cent in the last quarter and 20.3 per cent over 2011 as a whole, according to agents Knight Frank. The sharp rise means that buying part of London’s “blessed plot” on which to build homes now costs almost as much as in the peak of 2006 and 2007.
With planning permission land typically fetches between £800 and £1500 per square foot in prime areas, said Ian Marris, Knight Frank’s head of development consultancy.
Land prices have not recovered as quickly as built property values because of a shortage of bank funding for development since the financial crisis. Many purchases are now funded by private equity.
With planning permission land typically fetches between £800 and £1500 per square foot in prime areas, said Ian Marris, Knight Frank’s head of development consultancy.
Land prices have not recovered as quickly as built property values because of a shortage of bank funding for development since the financial crisis. Many purchases are now funded by private equity.
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