Why The Central London Sales Market Trend Is Set To Change
Greater London Properties: Central London Real Estate Market Outlook for 2024 is looking far more optimistic than the news is letting on. Rob Hill explains the reasons for this attitude and why now is realistically the best time to get your property ready to sell if you're looking to achieve a good price.
As we step into 2024, there are several exciting developments and trends that could impact property prices and market dynamics in Central London but what does this mean for those considering selling their property in the next 3 - 6 months? Our Director Rob Hill discusses in more detail below:
" We're fortunate as estate agents that we have always specialised purely in Central London and never ventured outside our core area which has really allowed us to understand our particular market exceptionally well.
I have always maintained that this area of the London, stretching no more than a 3 mile radius is a different world to the rest of the capital and country. In fact, Westminster as a borough has always had a significantly higher gross domestic product (GDP) than any other London borough which in itself means that people will consistency flock to this area. We will never be without demand however it is imperative properties are priced correctly according to market conditions. I cannot stress how important it is to bring in an estate agent who will tell you the actual value of your home and not simply a figure they feel you want to hear meaning your property stagnates and simply gets pushed down the priority list and subsequently gets a price reductions and huge void period.
68% of our sales properties in 2023 were sold at asking price. 19% went over asking the price. How? Prices were correct which encouraged viewings and the bids came in creating a competitive element. Its simple economics".
So, why do we feel more optimistic about prices this year,
1. Increased Buyer Confidence
One of the most encouraging signs for Central London's real estate market is the resurgence of buyer confidence. The stabilisation of interest rates and the competitive mortgage rates offered by lenders have reignited faith in the market. Greater London Properties understands that this renewed confidence could lead to more people entering the market, driving demand, and potentially pushing up property prices.
2. Inflation Control
Inflation control is a vital factor that contributes to a stable economy. When inflation is managed effectively, individuals and investors feel more secure about their financial future. This sense of security can encourage investment in property. As specialists in Central London property sales, Greater London Properties are well placed to guide you through the nuances of this stable economic climate.
3. Early Signs of Market Recovery
It has been an unusually busy start to January 2024 compared to the same period in 2023 for all the team here at GLP both in Residential Sales and Lettings which we have obviously been delighted with. This uptick in activity could be an early indicator of a recovering market. History has shown that increasing activity often precedes a rise in property prices. It's a promising sign for those considering entering the Central London property market.
4. Pent-up Demand
The economic climate in 2023 may have led many potential buyers to delay their property purchase plans. Now, with improving conditions, there's the potential for pent-up demand to flood the market. These buyers, who have been waiting for the right moment, could further contribute to the demand for Central London properties.
5. Investor Activity
Savvy investors often view uncertain market conditions as opportunities. The current situation may be seen as an opportune time to invest in properties, with an eye on future price increases. Investor activity can play a pivotal role in driving property prices upwards, and Greater London Properties are always active in identifying these opportunities for all our regular investors!
6. Government Policies and Incentives
With a general election on the horizon for 2024, there's the possibility of new government policies or incentives aimed at stimulating the property market. These measures could significantly impact property values. Our sales team will gladly keep you informed about any developments on this front and help you navigate the ever-changing regulatory landscape. This is especially true for our overseas investors.
7. Global Economic Trends
Greater London Properties recognizes the increasing foreign investment in the UK property market. This influx of international capital can contribute to rising property prices, making Central London an attractive investment destination on the global stage.
8. Supply and Demand Dynamics
The fundamental principles of supply and demand continue to play a vital role in property prices. As specialists in Central London property we understand that if the supply of new housing remains limited while demand continues to grow, property prices are likely to increase. We are here to help you make informed decisions in this context.
9. Long-term Investment Perspective
As Central London's property market stabilizes, more individuals, including retirees, may view property as a long-term investment for future security. This growing perspective can further drive property prices up.
Greater London Properties stands at the forefront of Central London's Real Estate Market, ready to guide you through the evolving landscape.
With increased buyer confidence, inflation control, signs of market recovery, and various other factors at play, now is an exciting time to consider Central London property transactions. Trust our expertise and experience to make your real estate goals a reality in 2024.
For a free Sales Valuation please give our team a call on 0207 734 4062 or email us here.
We look forward to hearing from you,
Warm Regards
Rob Hill, Director