Prime London markets are relatively good value as buyers continue to reassess how and where they want live after the Covid-19 pandemic. Getty Images
Prime London markets are relatively good value as buyers continue to reassess how and where they want live after the Covid-19 pandemic. Getty Images
Prime London markets are relatively good value as buyers continue to reassess how and where they want live after the Covid-19 pandemic. Getty Images
Prime London markets are relatively good value as buyers continue to reassess how and where they want live after the Covid-19 pandemic. Getty Images

Business

Property

London prime property surge driven by return of international buyers

Premium estate agent Knight Frank says number of accepted offers in July highest in a decade

Tim Kiek

August 07, 2022

  • English
  • Arabic

Offers accepted in London's prime property market reached their highest in a decade in July, premium estate agent Knight Frank says.

A combination of factors has led to the pipeline being stronger than it was in the final months of the stamp duty holiday in 2021.

First, international travel is resuming, with the number of international arrivals at Heathrow in June only 17 per cent down on the same month in 2019. This compares to an equivalent drop of 87 per cent in the same month last year.

Second, prime London markets are relatively good value as buyers continue to reassess how and where they want to live after the Covid-19 pandemic.

While all the attention was on the escape-to-the-country trend during the pandemic, price growth in London was lacklustre, even after six subdued years. Average prices in prime central London are still 15 per cent down on their previous peak seven years ago.

MORE ON PROPERTY

The 10 most expensive areas in London revealed

There is also a creeping sense that investors are looking more closely at safe-haven assets, which has traditionally benefited the prime London property market.

Investor nerves have been clearly rattled this year, as central banks attempt to avoid stagflation. After steep declines due to a strengthening US dollar, the gold price has risen modestly since mid-July against a backdrop of geopolitical tension.

The picture isn't completely rosy, though, and Knight Frank's head of residential research Tom Bill said there are “risks for the market”, albeit “not yet looming large”.

He cited rising interests rates in the UK, which yesterday the Bank of England lifted to 1.75 per cent, the largest leap in 27 years

“However, the impact has not yet had a material impact on UK property markets, with mortgage offers standing for six months and most people on fixed-rate mortgages,” he said.

He is also dubious rising interest rates will ever materially affect the prime London market, given the affluence of those transacting within it inures them to higher borrowing costs.

Underlining his thesis is the current strength of higher-value markets. While average price growth in Prime Central London (PCL) was 2.8 per cent in the year to July and 5.2 per cent in prime outer London (POL), the performance was stronger in higher price brackets.

Mr Bill highlighted one other unknown factor that might impinge on the market: the identity of Boris Johnson's successor in the race to become the next UK prime minister.

Yet whether Rishi Sunak or Liz Truss get the keys to No 10, given the neoliberal instincts of both, neither are likely to make decisions that will adversely affect high-value property transactions.

Rental market lagging sales

While it's increasingly business as usual for prime London sales, the lettings market remains a long way from normality.

Demand is robust but supply remains tight, with the imbalance between supply and demand widening last month.

A flood of short-let properties came on to the market last year due to staycation restrictions, which drove down rental values. As the economy reopened, supply subsequently fell and demand spiked, causing rents to rise.

The arrival of international students and corporate tenants this summer further fuelled the imbalance.

“It is unlikely the situation will change meaningfully while the sales market in London remains so robust,” said Mr Bill.

For now, there remains strong upwards pressure on rental values. Average rents in PCL rose 22.2 per cent in the year to July, a rate that has narrowed from a peak of 29.2 per cent in April. In POL, the annual rise fell to 17.3 per cent from 23.5 per cent in April.

And it is not a trend limited to London: prime residential rents in global cities are rising at their fastest pace since 2010.

________________________

Inside former Gucci HQ as $66.6m London mega mansion goes on sale

The former office of former Gucci chief executive Domenico De Sole. All images courtesy Beauchamp Estates/Tom St. Aubyn Photography
The former office of former Gucci chief executive Domenico De Sole. All images courtesy Beauchamp Estates/Tom St. Aubyn Photography
The house contains its own health club with sauna.
The house contains its own health club with sauna.
The former Gucci boardroom.
The former Gucci boardroom.
Grafton Street in London's Mayfair.
Grafton Street in London's Mayfair.
The kitchen is state-of-the-art.
The kitchen is state-of-the-art.
The property was substantially refurbished.
The property was substantially refurbished.
Elements of grandeur remain.
Elements of grandeur remain.
The house is on the market for £55 million.
The house is on the market for £55 million.
Domenico De Sole's former office is now part of the penthouse suite.
Domenico De Sole's former office is now part of the penthouse suite.
A VIP bedroom suite.
A VIP bedroom suite.
The house has its own gym.
The house has its own gym.
The library in the Grafton Street property.
The library in the Grafton Street property.
There's a mosaic lined steam room and a Scandinavian style sauna.
There's a mosaic lined steam room and a Scandinavian style sauna.
The bathrooms have top-level finishings.
The bathrooms have top-level finishings.
The indoor swimming pool.
The indoor swimming pool.
The kitchen comes with a breakfast bar.
The kitchen comes with a breakfast bar.
The main reception room and Tom Ford's former office.
The main reception room and Tom Ford's former office.
The sauna.
The sauna.
Tom Ford's former office.
Tom Ford's former office.
A sweeping staircase connects the levels.
A sweeping staircase connects the levels.
The house has a passenger lift.
The house has a passenger lift.
The drawing room offers optimal comfort.
The drawing room offers optimal comfort.
Domenico De Sole's former office.
Domenico De Sole's former office.
The VIP bedroom suite.
The VIP bedroom suite.
Five famous companies founded by teens

There are numerous success stories of teen businesses that were created in college dorm rooms and other modest circumstances. Below are some of the most recognisable names in the industry:

  1. Facebook: Mark Zuckerberg and his friends started Facebook when he was a 19-year-old Harvard undergraduate. 
  2. Dell: When Michael Dell was an undergraduate student at Texas University in 1984, he started upgrading computers for profit. He starting working full-time on his business when he was 19. Eventually, his company became the Dell Computer Corporation and then Dell Inc. 
  3. Subway: Fred DeLuca opened the first Subway restaurant when he was 17. In 1965, Mr DeLuca needed extra money for college, so he decided to open his own business. Peter Buck, a family friend, lent him $1,000 and together, they opened Pete’s Super Submarines. A few years later, the company was rebranded and called Subway. 
  4. Mashable: In 2005, Pete Cashmore created Mashable in Scotland when he was a teenager. The site was then a technology blog. Over the next few decades, Mr Cashmore has turned Mashable into a global media company.
  5. Oculus VR: Palmer Luckey founded Oculus VR in June 2012, when he was 19. In August that year, Oculus launched its Kickstarter campaign and raised more than $1 million in three days. Facebook bought Oculus for $2 billion two years later.
West Asia rugby, season 2017/18 - Roll of Honour

Western Clubs Champions League - Winners: Abu Dhabi Harlequins; Runners up: Bahrain

Dubai Rugby Sevens - Winners: Dubai Exiles; Runners up: Jebel Ali Dragons

West Asia Premiership - Winners: Jebel Ali Dragons; Runners up: Abu Dhabi Harlequins

UAE Premiership Cup - Winners: Abu Dhabi Harlequins; Runners up: Dubai Exiles

UAE Premiership - Winners: Dubai Exiles; Runners up: Abu Dhabi Harlequins

SOUTH%20KOREA%20SQUAD
%3Cp%3E%0D%3Cstrong%3EGoalkeepers%3A%20%3C%2Fstrong%3EKim%20Seung-gyu%2C%20Jo%20Hyeon-woo%2C%20Song%20Bum-keun%0D%3Cbr%3E%3Cstrong%3EDefenders%3A%20%3C%2Fstrong%3EKim%20Young-gwon%2C%20Kim%20Min-jae%2C%20Jung%20Seung-hyun%2C%20Kim%20Ju-sung%2C%20Kim%20Ji-soo%2C%20Seol%20Young-woo%2C%20Kim%20Tae-hwan%2C%20Lee%20Ki-je%2C%20Kim%20Jin-su%0D%3Cbr%3E%3Cstrong%3EMidfielders%3A%20%3C%2Fstrong%3EPark%20Yong-woo%2C%20Hwang%20In-beom%2C%20Hong%20Hyun-seok%2C%20Lee%20Soon-min%2C%20Lee%20Jae-sung%2C%20Lee%20Kang-in%2C%20Son%20Heung-min%20(captain)%2C%20Jeong%20Woo-yeong%2C%20Moon%20Seon-min%2C%20Park%20Jin-seob%2C%20Yang%20Hyun-jun%0D%3Cbr%3E%3Cstrong%3EStrikers%3A%20%3C%2Fstrong%3EHwang%20Hee-chan%2C%20Cho%20Gue-sung%2C%20Oh%20Hyeon-gyu%3C%2Fp%3E%0A
Hamilton’s 2017

Australia - 2nd; China - 1st; Bahrain - 2nd; Russia - 4th; Spain - 1st; Monaco - 7th; Canada - 1st; Azerbaijan - 5th; Austria - 4th; Britain - 1st; Hungary - 4th; Belgium - 1st; Italy - 1st; Singapore - 1st; Malaysia - 2nd; Japan - 1st; United States - 1st; Mexico - 9th

While you're here

Michael Young: Where is Lebanon headed?

Kareem Shaheen: I owe everything to Beirut

Raghida Dergham: We have to bounce back

Transgender report
Our commentary on Brexit
Read more
While you're here
UAE currency: the story behind the money in your pockets
Quick pearls of wisdom

Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”

Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.” 

Killing of Qassem Suleimani
How much do leading UAE’s UK curriculum schools charge for Year 6?
  1. Nord Anglia International School (Dubai) – Dh85,032
  2. Kings School Al Barsha (Dubai) – Dh71,905
  3. Brighton College Abu Dhabi - Dh68,560
  4. Jumeirah English Speaking School (Dubai) – Dh59,728
  5. Gems Wellington International School – Dubai Branch – Dh58,488
  6. The British School Al Khubairat (Abu Dhabi) - Dh54,170
  7. Dubai English Speaking School – Dh51,269

*Annual tuition fees covering the 2024/2025 academic year

While you're here
How to wear a kandura

Dos

  • Wear the right fabric for the right season and occasion 
  • Always ask for the dress code if you don’t know
  • Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work 
  • Wear 100 per cent cotton under the kandura as most fabrics are polyester

Don’ts 

  • Wear hamdania for work, always wear a ghutra and agal 
  • Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
The%20specs
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3ESingle%20front-axle%20electric%20motor%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E218hp%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E330Nm%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3ESingle-speed%20automatic%3Cbr%3E%3Cstrong%3EMax%20touring%20range%3A%20%3C%2Fstrong%3E402km%20(claimed)%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh215%2C000%20(estimate)%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3ESeptember%3C%2Fp%3E%0A
GAC GS8 Specs

Engine: 2.0-litre 4cyl turbo

Power: 248hp at 5,200rpm

Torque: 400Nm at 1,750-4,000rpm

Transmission: 8-speed auto

Fuel consumption: 9.1L/100km

On sale: Now

Price: From Dh149,900

Updated: August 08, 2022, 7:19 AM`
Property