By New data from Foxtons, London’s leading estate agent, reveals how prime London became the location of choice in 2022 as demand from prime buyers and renters soared.
Data from Foxtons’ annual London Report shows a 59% increase in demand from prime London buyers and renters in 2022, with Foxtons’ Prime London offices delivering the highest levels of transactions since 2016.
In particular, prime new build properties are in high demand.
Whilst new build properties have long attracted a price premium, the London Report finds current premium is higher than five years ago.
Today, premium new build developments offer residents more than just a physical home.
Increasingly they include facilities and amenities aimed to develop a sense of community, wellbeing and environmental consciousness, all sought after by buyers and renters.
Energy efficiency and low maintenance are also key attractions of new build properties, the report found.
Close to nine in ten new build apartments in London met the highest Energy Performance Certificate (EPC) ratings of ‘A’ and ‘B’ in 2022, in contrast to the resale market where over 80% were rated ‘C’ or ‘D’.
According to Foxtons’ London Report, premium new build properties have proved particularly popular with international investors, making up 15% of all buyers who have gone under offer or exchanged on these properties so far in 2023.
The opportunity to buy off-plan, or the convenience of purchasing ready-to-move-in property, alongside the relative value of sterling throughout the course of 2022, explains why Prime London has been an attractive investment to overseas buyers.
Foxtons recently partnered with the Berkeley Group to connect Hong Kong buyers and landlords with UK property.
Alex Isidro, Head of New Homes & Investments at Foxtons, said:
“2022 proved a successful year for our new build teams, with more deals completed year-on-year.
We expect demand for well-priced new build homes in desirable locations to remain strong in 2023.
Another trend we’ve seen is more Hong Kong buyers entering the London market via Build to Rent schemes, which can often offer flexible tenancy agreements to make the transition to a new country easier.
Hong Kong residents have been primarily purchasing investment properties, such as in new build developments in Canary Wharf and Nine Elms, and we are seeing an increasing number of Hong
Kong buyers are looking for family homes, in residential communities with good schools.”
Comments