24 Mar

City property demand boosts capital prices

City property demand boosts capital prices

The growth in demand for property in the City of London is having a positive impact on prices in the capital and surrounding regions.

A new report from Knight Frank shows many areas in and around the City of London are enjoying developing as prime residential areas, driven largely by job creation.

Data shows that the number of properties sold in the region, which runs from Farringdon to Whitechapel, was 19 per cent higher than in 2014, compared to 2012's levels.

"Growing demand has underpinned price growth, which has outperformed prime central London over the last three years and demand for housing has also been spurred by the relative value that is on offer, in terms of price per square foot, compared to the more traditional prime areas," explained Oliver Knight of the estate agent’s residential research team.

One of the benefits of the City is that it has large existing property stocks, with plenty of period commercial buildings and Georgian Terraces. In fact, may have already been converted to meet the increasing demand.

In addition the number of popular landmarks in the square mile, including Smithfield Market, Columbia Road Flower Market, Whitechapel Art Gallery and Brick Lane, have all helped to boost interest in the area.

Therefore, there has been a surge in property development activity to help increase residential houses.

Mr Knight explained: "We expect that the mix of development, job creation and regeneration in the area means that its draw to homebuyers and investors is likely to continue to grow in the coming years.

"Further improvements to infrastructure and continued re-generation of the area will result in new amenities being delivered, as well as improvements to the public realm. This is likely to increase buyer demand for residential property in the area and could underpin future price rises."ADNFCR-1222-ID-801780887-ADNFCR

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