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Is Prime Property in Central London Meant for the Affluent?
Present trends in the real estate industry hint that residential property in prime central London is meant only for the super-rich domestic and foreign buyers
Trends show that one in every three prime London homes was purchased by a foreign investor last year, clearly showing the extent of foreign interest in buying London prime property. This also resulted in property rates going up by nearly 30% over the last three years. For instance, the ultra-rich Knightsbridge development sold several lush penthouses to both domestic and foreign buyers for outstanding prices.
Going by these facts and figures, the high class builders are planning the construction of more than 10,000 new residential homes in the next 10 years, which would be almost £40 billion in total! The affluent areas that these builders are targeting for the new developments include the City, Fulham, and Chelsea.
Grosvenor Crescent has also come up as a lavish sophisticated development of 15 lateral apartments within a Grade II listed land in Belgravia, comprising of properties as posh as three double bedrooms apartment with a private courtyard, worth nearly £20m. This shows how quickly and sharply the luxury property sector is blooming day by day.
With that said the fact that nearly 37,000 new homes still need to be constructed every year in London to meet the growing demand of the common buyer segment cannot be ignored. Therefore, real estate developers should be cautious of investing only in high end new developments focusing foreign investors only. Also, properties which are slightly outside the demarcated prime areas should not be made keeping the wealthy in mind as the property can be valued at prices suitable to the location. Higher price tags which are meant mainly for prime locations will only look unjustified with properties built in non-prime areas and will also fail to catch the attention of buyers.
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