London Luxury-Home Values to Rise 6% in 2013, Knight Frank Says
Sun 28 Jul 2013
Central London luxury-home values will jump 6 percent this year, Knight Frank LLP said, revising its estimate that
prices would be little changed in 2013.
The average price of a house or apartment in the citys most-expensive neighborhoods climbed 4.2 percent so far
this year and interest among prospective buyers remains strong, the London-based broker said in a report today.
Key reasons include the citys reputation as a safe haven for investment and the value of the pound, Knight Frank
"Further weakening in sterling in the first half of the year helped to boost overseas interest and domestic demand
has been aided by Londons economic recovery," Knight Frank said.
Overseas investors are buying London properties to preserve wealth amid political and economic turmoil in their
home markets, leading prices to rise more than brokers had expected. Knight Frank, along with Jones Lang
Knight Frank as recently as last month said it expected little change in luxury London home values for the whole
of this year. Values rose in May by the smallest annual amount since December 2009 on a drop in the affluent
Knightsbridge area, the broker said last month.
The average value of luxury homes in central London surpassed 2 million pounds ($3 million) for the first time in
the second quarter as more purchasers competed for a smaller number of properties on the market, broker Marsh
& Parsons Ltd. said last week.
The strongest increase in prices has been for homes below 1 million pounds, and the biggest gains in June were
in the neighborhoods of Islington, Marylebone and the South Bank. Property prices in prime central London
locations are now almost 60 percent above their low during the financial crisis in March 2009, Knight Frank said.