Thanks to Best Gapp, an estate agents in Belgravia for this article.
Since the crash of 2008 we have seen a shortage of stock in the sales market across the central London region, this has been driven by a fear of the unknown and low interest rates, which has meant that people do not have to sell. In Belgravia, a square mile of the central London market where there is a ready mix of flats and houses the shortage of stock has been down by at least 50% from the highs of 2007 and In some quarters more. We have seen overseas investors looking for a safe haven to invest their capital, these people have come from as far as Russia and Hong Kong or the more effected areas of the Euro zone such as Italy and Greece to use the London property market as somewhere to invest outside of their national currencies.
Belgravia is one of the prime residential areas in central London with Eaton Square as the most recognised address in the world, with stock shortages as they are, purchasers are competing for what is available, this has led to some staggering prices being achieved with records being broken on a weekly basis. We see different nationalities coming into London at different times of the year, which keeps a good supply of interested buyers who are active and perform. This has created a good market and we have seen prices increase in value by between 10 and 15% year on year, and I don’t see any reason at the moment why this trend should change. The shortage remains and the demand remains strong, the market will slow down towards the end of November and because of the very nature of it I see it picking up again in the traditional manner in the second week in January.