The premium end of the property market in Bromley, Westminster, Islington and other parts of the capital has seen some of the highest demand on record this year. Sales of investment properties worth in excess of £1 million reached record levels in the first half of 2014, seeing 6,143 homes change hands. This figure is an increase of almost 2,000 or 46% over the previous year. It shows how much demand there is in the luxury market and that many sellers are willing to let their investment properties go when they receive the right offer.
Of the 6,143 sales 4,259 of them were in London, accounting for 70% of the overall figure. The capital is home to the highest volume of properties valued at over £1 million in the whole of the UK. It also has the highest demand so prices are naturally higher in the area. Of the various boroughs Kensington and Chelsea remained the most popular with 772 sales, followed closely by Westminster with 633. Growth has been seen across the whole city this year as people rush to find an investment.
Although the market is cooling as the year comes to an end, the figures are very impressive and show how far the property sector has come since the global economic crisis. Demand is far outstripping supply and as more and more properties are snapped up prices rise even more because of the reduced number that is left. Property owners, even those not currently considering selling, are watching the market carefully and trying to decide whether it is worth taking the profits and looking for a new investment.
The demand in the market can be seen with the fact that even properties still under construction are being snapped up and there is great competition for development sites. London is one of the most desired markets for property in the whole world, beating both Hong Kong and New York in terms of the value per square foot. Property prices are predicted to rise further next year, with demand from at home and overseas both set to increase.