Prime Central London to bounce back … with some exceptions

Prime Central London will bounce back in 2023 according to national consultancy Carter Jonas - and it’s thanks to the poorly performing pound.

PCL will out-perform the rest of London in the coming months as overseas dollar buyers from the US, Middle East and Asia take advantage of the weak pound.

Samuel Richardson, head of sales for the agency in Marylebone and Mayfair, comments: “We are anticipating that 2023 will be a very good year for the prime London property market. 

At the end of September this year, UK property was 25 per cent less expensive for these buyers than in June 2021 and this is a trend we expect to continue. Some 80 per cent of those that purchased via our Marylebone office in prime central London in the last quarter of 2022 have been from overseas. 

“Around 50 per cent have been Dollar buyers, the majority from America, followed by those from the Middle East and Singapore. Interestingly, 90 per cent of American buyers were Californian.”

The agency anticipates the major prime central London boroughs will remain desirable investment locations next year. Mayfair, Marylebone, Kensington and Chelsea are set to outperform all London markets as these buyers are purchasing in cash for purely investment purposes.

Areas such as southwest London will likely be more heavily impacted, as those who bought there in recent years will be affected by the rising interest rates. 

Carter Jonas warns that this area could see a drop in property values, as many people may sell up.

Richardson adds: “I am almost certain that prime central London will outperform all other London areas in 2023. Despite there still being high demand and lack of supply, the soaring rental market will see the return of the investor as they take advantage of better rental yields. 

“Savvy investors are also taking advantage of discounts from developers who are selling remaining units in new build developments and are happy to discount to cash buyers.

“Buyer demographics are varied from international and domestic professionals buying pied-a-terres in convenient, high traffic areas, to those purchasing short-term investments or properties for children whilst studying in London. 

“If the dollar remains strong, I believe that prime central London will outperform the rest of London next year. The reason for this is due to high demand and a soaring rental market which will appeal to investors taking advantage of the good exchange rates.”

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