London Prime Central Real Estate Begins Tentative Recovery
After three years of weakness, transaction volumes in PCL postcodes turn higher as international buyers return to a more accommodating tax environment.
Prime central London transaction volumes rose 18 percent year-on-year in the first quarter, the first meaningful recovery in three years and a tentative validation of bullish calls from Knight Frank and Savills.
International buyers — particularly from the Gulf, the United States and continental Europe — accounted for 62 percent of transactions above £10 million, up from 51 percent the prior year.
The catalyst was a more measured posture from the Treasury on non-domiciled tax reform, which had previously been expected to drive sustained outflows from the segment. The eventual reform package, finalised earlier this year, was less stringent than initial proposals.
Specialist agents nonetheless remain cautious. Sterling weakness has provided a meaningful tailwind that may not persist, and the supply pipeline at the highest end of the market remains constrained.
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