Demand for luxury housing in London slowed in the first quarter of 2022, according to a report published by Benham and Reeves.
According to Benham and Reeves estate agency, for the most expensive homes (sold for £10m and above), demand has hovered at 4% in the first three months of 2022. This is 4% down on last year and 5% quarter on quarter.
Prime properties priced between £2m and £10m are faring better, with demand at 25%, down just 2% on last quarter but up around 5% year on year.
“Take the temperature of any segment of the property market in the first quarter of the year and you’ll probably find that it gets back on track after the Christmas break, so a drop in demand so early in the year is certainly not a cause for panic,” explains Marc von Grundherr, director of Benham and Reeves, in the report.
However, as the Russian invasion of Ukraine continues, it is unclear how the London market will react. “While sanctions against Russia have a relatively small impact on the market, the prime market is one that operates on quality rather than quantity,” von Grundherr continued. “So even if a handful of properties are put up for sale, this is likely to saturate the market in some of the most prestigious areas of the capital and this will certainly have an impact on the price paid for these properties.”
At the top end of the market, Notting Hill in west London saw the biggest increase in quarterly demand, with an 11 per cent jump on the previous three months, taking its demand score to 20 per cent, the data showed. Wimbledon Village, meanwhile, saw the highest demand, at 25%, but saw a 45% drop on the previous quarter.
For homes priced between £2m and £10m, the east London borough of Wapping recorded the highest quarterly increase of 13 per cent, bringing its demand rate to 19 per cent.
In addition, the Canary Wharf financial centre (where demand virtually disappeared during the pandemic) saw demand rise to 16.7%, an increase of 5.6% on the end of last year. The increase in demand could be a sign that buyers are returning to denser urban environments, after the pandemic left them craving nature and more spacious living.
Read also > LONDON: RECORD PURCHASES FOR LUXURY HOMES IN 2021
Featured photo : © Benham and Reeves
