Overseas executives flock back to London as the relocations market explodes
International business executives are flocking back to London, according to new data shared exclusively with City A.M. today, after the pandemic pushed many to return overseas.
The return of bankers, investors and the sought have driven demand in the prime central London relocations market up 150 per cent in the first three months of this year, the latest figures from estate agents Winkworth revealed.
Interest started to return in September last year, just after the UK lifted a raft of its Covid-19 restrictions but has accelerated as global travel restrictions ease.
Winkworth chief executive Dominic Agace said the increase “shows that London, as a global leader in the new economy of fintech investment, is seeing positive signs for the direction of travel of the sales market in prime districts – where prices still remain below 2015 levels.”
It comes as the pricier homes outside of central London outpace those at the heart of the capital in terms of price growth – meaning the difference between a home in central and out London has shrunk dramatically.
The value of million-pound homes outside of the centre, in areas such as Hampstead, Highgate, Islington and Barnes, have grown 13.5 per cent over the past year, according to the Coutts London Prime Property Index, compared with 3.8 per cent in inner areas like Belgravia and Chelsea.
“Whilst it’s not entirely realistic to talk about ‘bargains’ when it comes to the London prime property market, parts of the market look incredibly cheap relative to historic prices,” Coutts’ Katherine O’Shea said.
“Those willing to negotiate for their million-pound home could do well, particularly if they are looking at the centre of the capital, where house prices are yet to recover. Prices in prime central London are poised to grow faster this year following almost of decade of broadly negative growth.”