Prime property prices in Central London has grown up by 11.4 percent in November according to the new figures. According Liam Bailey, head of residential research at Knight Frank, the estate agent, there is an upturn in the growing demand for properties at the very top end of the market, which is benefitted the most.

This growing demand is from city workers who prepare to receive their annual bonuses while getting closer to the end-of-year season. And it is found specially the demand is from the senior management, who keeps driving the property market in Central London.

Since March, London property prices in the overall prime central London market stopped falling and it took until May for the prices of £10 million-plus bracket to rise up. According to Bailey, the rise in property prices at the top-end of the market has been reflected by significant new activity in the £20 million and £30 million sector. Buyers have been dealing with them on a monthly basis prior to September and since then, these deals have taken place almost weekly.
Chelsea, Kensington and Knightsbridge are areas where Knight Frank has experienced the strongest growth in the market. They expect the demand to continue to stoke prices.

Bailey comments, “With stock levels still 25 per cent below trend at the current time – and new buyer registrations up by 30 per cent on last year – the pressure on prices in the short term at least is likely to be upwards.”

Knight Frank is of opinion that the Central London property market may recover in 2010. They also forecast that prices in the super-prime residential market will rise from next year as stronger demand meets lower supply levels.
Central London office investment market too is showing relative value to other European markets because of the rapid correction in pricing in the UK as well as the currency fluctuations, attracting interest from private buyers.