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Say JLL MENA in latest residential research
The Central London development market* experienced heightened levels of activity during 2012 that saw sales and construction hit post-crisis peaks say JLL MENA in latest
residential market research. And these strong levels of activity look set to continue through 2013.
In 2012, over 7,300 new units exchanged in central London, a 50% increase year-on-year and the highest number recorded since the financial crisis. Looking at Q1 2013, there stands to be a further improvement but the research shows that rates of sale in Central London were already improving steadily throughout the course of 2012.
Looking at these rising levels of demand, Peter Murray, Lead residential director at JLL MENA commented:
“The prominence of overseas buyers has undoubtedly been a driving force for this market. They are increasingly knowledgeable and are coming from a more diverse global network. Asia-Pacific purchasers are still leading the pack but we are seeing others from areas such as the Middle-East and Turkey following closely in their footsteps. But we must also not underestimate the activity from the domestic UK market. 2012 saw an increase in activity from UK purchasers and this positive upswing looks set to continue into 2013 as levels of interest are only set to increase.”
The number of units launched in 2012 was also significantly higher – 6,800 in 2012 compared to 5,600 in 2011 with Core locations experiencing even higher levels of growth. Importantly, this increase in launch and sales activity has led to a steady contraction in the number of unsold units as demonstrated below.
Commenting on the outlook for the central London development market,
Neil Chegwidden, residential research director at JLL MENA said:
“The outlook for the Central London residential market over the next five years will be determined by three key factors – overseas demand, domestic demand and available supply. Importantly, the outlook for all three looks to be supportive of further upward price growth and market activity.
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