Agents in London are predicting that 2023 will be an exceptional year for the prime central London (PCL) market following a recent increase in the number of cash buyers registering to purchase property in the heart of London.
Agents in Marylebone and Mayfair have seen cash buyers, many of whom are dollar buyers utilising the good exchange rates to purchase property in prime central London. This trend is predicted to continue into 2023.
Agents Carter Jonas predicts that the prime central London property market is set to out-perform the rest of London – and the country – in the coming months as overseas Dollar buyers from the US, Middle East, and Asia are looking at London to take advantage of the weak pound.
Samuel Richardson, head of sales at Carter Jonas in Marylebone and Mayfair, commented: “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% less expensive for these buyers than in June 2021 and this is a trend we expect to continue. 80% of those that purchased via our Marylebone office in prime central London in the last quarter of 2022 have been from overseas. 50% have been Dollar buyers, the majority from America, followed by those from the Middle East and Singapore. Interestingly, 90% of American buyers were Californian.
“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. This could see a drop in property values, as many people may sell up.”
Richardson added: “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. We’re also seeing many families looking for a more permanent and long-term abode. These buyers are spending anywhere from £800,000 to upwards of £70m.
“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.”