If you’re looking for a bellwether for the world economy, you could do worse than consider what’s happening at the very highest end of London’s property market.
Over several decades, Prime Central London – or PCL – had become a repository for cash from wealthy foreigners, whether they actually wanted to live there or not. This had several side effects – namely that PCL became mostly lined with empty properties and prices went into ‘trophy’ mode.
This is a world controlled by a cabal of high-end agents operating completely off the grid
Then Brexit appeared on the horizon, and for some time rich international buyers avoided London out of fear of complications that might arise from being outside the EU. After all, these wealthy investors felt fairly confident that they had at least some grasp on what was happening in the world economy in the short- to medium-term – and PCL was left somewhat in the doldrums.
But all that has gone out of the window since the Ukraine war began. Anyone sticking their head above the parapet and claiming they know where the world will be in 12-36 months is sticking their finger in the air. I’ve never known so many ‘on it’ friends who simply shrug and are happy to state they haven’t a clue.
This unique set of circumstances has brought PCL back into focus as the safe haven of choice for global players seeking somewhere to stash their cash. A clique of executives from Meta have snapped up properties in London since the social media giant’s new King’s Cross offices opened this year, and they are far from alone.
There are two things in particular that show PCL is back in business. Firstly and most evidently, demand – and prices – are on the up. A large development site in a mews in South Kensington had been granted planning permission in 2014 for double-basement townhouses but struggled to attract interest from buyers. Suddenly, though, multiple prospective purchasers are chasing each one – despite the recent vast increases in the cost of building them. The reasons given are a bounce-back in property values and a demand for discreet, secure houses of this kind.
Secondly, in a signal of just who is stalking the market, there is a cloak of privacy surrounding property coming up for sale. This is not a world where details of properties circulate on supposed ‘off market’ websites; it’s one controlled by a cabal of high-end buying/selling agents operating completely off the grid. Look at a prime location such as Egerton Crescent in Knightsbridge – at first glance it appears there are just two houses (with prices around the £12 million mark) on the open market there. But a top buying agent tells me that access to 13 can be gained if you know the right people.
Plenty of people are keen to diss the UK at the moment, but the factors that make Britain a safe place to live and work remain steady – we are on the Greenwich meridian so can trade east and west; we are politically stable; we are an island; and we have a strong rule of law. In a turbulent world, these strengths are bringing London back to the attention of the global elite again.
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