Lack of supply and high domestic and international demand are pushing London prime residential prices upwards, says Bruce Ritchie, chief executive of Residential Land.
Ritchie said that while global factors may be slowing the quantity of prime demand, there is growing demand for slightly cheaper neighbouring areas, which have seen considerable growth.
EGi’s own London Residential Market Analysis found average prices for new-build residential property in London exceeded £1,000 per sq ft in Q1 2015. The growth was driven by rising prices in the inner London markets surrounding the traditional prime core.
Ritchie added that there was still value to be found in the right prime assets, where “the concentration of long-term wealth in those areas – that is less affected by the dramas of what might be going on in the UK or around the world – is far greater, far more resilient”.