Rebounding – The London property market is starting to climb…

Rental and estate agent in London, Benham and Reevesrevealed that demand from home buyers in London’s prime property market has increased on a quarterly and annual basis.

PCL homebuyer demand index by Benham and Reeves shows demand for homes worth between £2-10m and £10m+, based on the ratio of listed properties online, already sold under contract or subject to an offer.

Buyer demand in the main market

Demand from buyers in the main market increased by +1% in the second quarter of this year and by +1% on an annual basis.

The highest annual turnovers in buyer demand were recorded in Canary Wharf (+14%), Battersea (+10%) and Victoria (+8%).

The biggest quarterly increase in demand was seen in Barnes (+7%), Highgate (+7%), Wandsworth (+6%), Wimbledon (+6%) and Maida Vale (+6%).

Anyone considering investing in prime properties may need to consider areas that are home to the highest current demand. These locations include Chiswick and Barnes (51%) and Wandsworth (48%).

Buyer demand in the super prime market

Between the first and second quarters of this year, there was a +4% increase in buyer demand.

Benham and Reeves also reveal that 25% of all homes listed at £10m or more are already on offer or sold under contract. Fitzrovia, Hampstead Garden Suburb and Wimbledon are listed as the most important super prime market areas

While buyer demand has climbed 34% since the start of the year, Belgravia recorded the best performance in the second quarter.

Benham and Reeves director Marc von Grundherr commented: “It has been a fairly slow start to the year for the London primary market and there is no doubt that the uncertainty caused by the conflict in Ukraine has added to the lethargy post-Christmas which traditionally curbs the appetite of buyers during the first quarter of the year.

“But since then we’ve seen a real sign of intent from high-end buyers, with demand for prime homes starting to pick up, especially in the super prime market.”

“While the more outlying areas that have grown in popularity during the pandemic are still in high demand, we have also seen a surge in appetite for primary residences in Canary Wharf and Victoria, which is extremely promising in regarding the overall health of the city. ”

“In addition to these more professional hubs which are performing well, demand is also returning to the traditional cores of Belgravia and Fitzrovia and that’s a sure sign that we’re on for a good year ahead.”