London is top spot for wealthy real estate buyers, report suggests

Demand for luxury homes in the Europe, Middle East and Africa region is strong as ultra wealthy individuals are buying around the world to further diversify their holdings […].

The UHNW Residential Real Estate index tracked by Wealth-X hit a new record high of 112.1 in the first quarter of 2015, up nearly 4% from the fourth quarter of 2014, and 7% from the first quarter of 2014.

London remains the top real estate hub for the EMEA region. The city’s price per square foot at US$3,103 is nearly four times that of Dubai, six and nine times more than Madrid and Cape Town respectively.

The report says that a third of all premium London properties for sale, that is homes valued above US$1 million, are worth more than US$10 million. By comparison, Dubai has only 8% of its luxury properties listed in the super prime range above US$10 million […].

‘Luxury residential real estate encapsulates a core part of the identity of the super-rich. As their wealth continues to grow, so will their investment fueled by flight to safety from less geopolitically stable geographies,’ said Wealth-X president David Friedman. LINK

Pay an extra 25% to buy a house in a popular London garden square

The average price of a home located on one of central London’s popular garden squares now costs above £2 million and commands a sales premium of 25% over a similar home nearby, new research shows.

The study analysed house prices in and around 64 of central London’s garden squares. The 25% premium for 2015 remains unchanged from 2014, although the average price of a home in a garden square rose 7% to £2,040,713, breaking the £2 million mark for the first time.

In order to derive the premium, the analysis compared sales prices, taken over a five year period, of properties located on a garden square, compared to those within a 200 meter radius of a square. All prices were indexed forward to January 2015 values, to account for house price inflation.

In 2015 a property situated on a central London garden square sells on average for £2,040,713 compared to £1,643,907 for a similar property within a 200 meter radius of the square.

For houses the price differential is even greater. The average price for a house located on a garden square in 2015 is £5,022,221, compared to £3,320,582 for a house within a 200 meters radius of a square.

Overall it’s a combination of factors that accounts for the price premium buyers are prepared to pay for a home on a London garden square; namely setting, prestigious address and exceptional architecture […]. LINK

Prime central London rental values up for eighth month in a row

Rental values in prime central London rose for the eighth successive month in October, recovering to a level last seen two years ago, the latest index report shows.

Rental values climbed 0.5% in October as the UK economic recovery strengthened and yields saw the strongest improvement in three years […].

Annual growth was 2.6%, the highest rate since December 2011 and in the third quarter of 2014 tenancies agreed rose by a quarter while tenancies started increased by a third.

Rental yields rose to 2.9%, recording the biggest monthly gain in more than three years, the report also reveals […]. LINK

Cushman & Wakefield – “Winning in Growth Cities 2014-2015″ Report

Cushman & Wakefield, a commercial real estate services firm headquartered in New York, in its recent ”Winning in Growth Cities 2014-2015” Report confirmed London as one of the most interesting real estate markets in the world.

According to the Report, London is the Top City in the World for Global Investors/Foreign Buyers. According to the Report, “London remains by far the most favoured market with a 14.1% share versus 5.5% for Paris and 4.9% for New York.

According to the Report, London also ranks first in the World as a “Global Business Hub”, “Technology Hub” and “Top City for Hospitality”.

In relation to Cross-Border Investment Volume, London ranks again first with a total volume of 29,370,466,865 USD. New York is second with 11,364,607,926, while Paris is third with 11,057,422,477. LINK

Number of new homes in the UK up with surge in London, latest data shows

The number of new homes registered in London last year was the highest since electronic records began over 26 years, according to new figures from the National House Building Council published on Friday 31 January.

In total 26,230 new homes were registered in the capital last year, a 60% increase on the 2012 figure of 16,364.
Overall, annual figures for new home registrations in the UK increased by 28% in 2013, compared to the previous year. This is the highest number of registrations at 133,670 since the economic downturn in 2007 […].

Emma Reynolds, Labour’s Shadow Housing Minister, welcomed the figures. ‘The number of new homes being registered may have finally started to grow, but it remains the fact that the number of homes being built has slumped to the lowest level in peacetime since the 1920s,’ she said.

‘We need to build many more homes to keep up with demand. Owning a home is out of reach of many low and middle income earners, rents are rising faster than wages and waiting lists grow ever longer,’ she added. LINK

Cushman & Wakefield, a commercial real estate services firm headquartered in New York, in its recent “Winning in Growth Cities 2012-2013” Report confirmed London as one of the most interesting real estate markets.

According to the Report, London is “the biggest global office and hotel investment market and the largest for cross-border investors”. LINK

According to the Financial Times “London’s prime property market – the top 5 per cent of housing by value – continues to outperform those of rival locations in New York, Paris and Hong Kong”.

“The huge number of developments being planned reflects the strong demand for expensive homes in London, with prices still surging as investors from overseas have flocked to the capital in to find stable investments away from the turmoil in the financial markets”. LINK

Qatar’s sovereign wealth fund is purchasing 20% of London Heathrow owner BAA in a move that adds the airport operator to a portfolio of British interests including the world famous Harrods and stakes in Barclays Bank and J Sainsbury. LINK