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London, 27th August 2013 - “The Central London residential development market is flourishing. Development activity, demand, prices and sales have all risen significantly during Q2 2013” according to Neil Chegwidden, Residential Research Director at Jones Lang LaSalle.
Development activity in Central London has increased by 9.7% during Q2 2013 and is now at a two-year high. 2,600 units were started in Q2 2013 and the number now under construction stands at 17,300 units. But despite this dramatic rise we are still building well below the quantum that London needs.
The volume of units coming onto the market has also risen. In the year to Q2 2013, 10,250 units were launched - a 30% rise year-on-year. Developers have quickly latched onto the enhanced market momentum which began 12 months ago and have been progressing and launching schemes at an increasing rate ever since.
But despite these expanding delivery numbers, the units being launched are still selling exceptionally well due to a strong domestic and international appetite. A staggering 66% of Central London schemes currently under construction are already sold – even more remarkable given that 30% of these units have only got underway this year.
Both international and domestic demand has increased during Q2 2013. London continues to be a magnet for global investment but is also attracting more and more UK owner-occupiers and investors as the global, UK and London economies brighten alongside consumer sentiment.
The number of sales has increased significantly over the past year and is illustrative of just how vibrant the Central London residential development market is at present. 3,000 units were sold in Q2 2013 and 10,400 in the past year – an amazing 39% improvement on a year earlier.
Peter Murray, Lead Director – residential development and investment at Jones Lang LaSalle summed up the market: “The increase in domestic demand for new Central London residential development product has been the most significant change and feature of the market during the first 6 months of this year. More positive sentiment, driven by an improved UK and global economic outlook as well as a broader fillip from Government housing initiatives such as Help-to-Buy, has encouraged more domestic buyers to come forward. Many perceive now as the right time to buy, trying to pre-empt a stronger surge in prices which may soon take hold.”
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Felicity Young - PR
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