Black Brick - Revival of the fittest
In this article Black Brick Property Solutions gives their insight into what is next for the prime central London (PCL) market.
The pandemic has taken a serious toll on London’s most prestigious addresses, but industry big hitters are confident that the worst is over for PCL.
Savills forecasts that sale prices will jump by eight per cent next year, and 23.9 per cent over five years, as overseas buyers return to London and city centre living comes back into favour post-pandemic. Its analysts point out that buyers are also aware that today’s prices represent something of a bargain, lagging 20 per cent below the levels seen during the last peak in 2014.
Strutt & Parker also has an optimistic take on PCL’s prospects next year, predicting growth of between five and ten per cent during 2022, and up to 35 per cent over the next five years.
“It is true that over the past year there has been no traction in PCL, but I think we are going to see increasing demand for really well located property,” said Caspar Harvard-Walls, partner at Black Brick. Managing Partner Camilla Dell, having just returned from a business trip from the Middle East, provides an insight into current appetite for PCL property amongst clients from the region, “I cannot remember a time when demand for PCL seemed so high. Almost everyone I met with has plans to increase their exposure to PCL over the coming months. In particular freehold blocks of apartments are extremely popular with investors in the Middle East. We are anticipating a strong start to 2022 if travel restrictions do not materially change because of the new Omicron variant. I think most clients can accept a 2-day quarantine with a PCR test but anything more stringent will see the boost to London property delayed”.
Not all PCL is equal, of course, and Harvard-Walls suspects that the hottest spots will be chic London village locations. “Perhaps it is the pandemic, but the demand from our clients is really for somewhere central enough that you can go to restaurants and the theatre, but where you also have a really good high street. They like the idea of knowing their neighbours and the name of the guy at the local café.”
Marylebone is a name that keeps on coming up with Black Brick customers, while the increasingly impressive range of cafes, restaurants, and boutiques on Pavilion Road is starting to give extra allure to the streets just north of Sloane Square too. “People are really investing in the London village idea,” said Harvard-Walls.
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Black Brick Property Solutions LLP
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London, W1J 6LU
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