By +Eric Jafari
While the sliding value of sterling may have
negative implications for the economy and regional
property markets, it seems that London real estate will not swayed
by the declining value of the pound.
Liam Bailey, head of Global Research at Knight Frank, claims
that with the eurozone rumbling on, the UK capital will continue to
be seen as a safe haven for investment by foreign investors,
ensuring activity remains strong across all sectors. This is
evidenced by a 0.4 per cent increase in prime central London prices
alone during January 2013.
Analysis of recent figures shows that the rise in sales
experienced at the end of the year, following the publication of
the draft finance bill and the clarification of property taxation,
has continued into 2013. According to Mr Bailey, this is the result
of pent up demand seen between June and November 2012, when buyers
adopted a "wait and see" approach. What's more, the drop in the
value of sterling has actually served to attract foreign investors
to London, with euro-denominated buyers' property values falling by
four per cent.
"The flipside of this, of course, is that euro-denominated
buyers who purchased property late last year have seen the value of
their investment fall in recent months. However, as the Eurozone
crisis continues to drag on, the long-term appeal of owning
property in a 'safe haven' such as London is unlikely to diminish,"
Mr Bailey wrote.
Knight Frank's latest London Review has revealed that South
Kensington is continuing to be popular among international buyers,
closely followed by Knightsbridge, Kensington, Hyde Park and
Belgravia. Knightsbridge was in fact one of the best performing
areas in terms of price growth, enjoying a 1.5 per cent rise last
month. Notting Hill also had a positive start to the year,
reversing its steady price decline with 0.8 per cent growth.
However, the capital is not entirely immune to the UK's poor
economic fortunes and while there will be no significant decline in
property values, no considerable gains will be made either.
According to Mr Bailey, there will be no notable movement during
the year, but in 2014 growth will return once again.
12 February 2013
Prime London Property,Sterling,Safe Haven Investing