A new year is a time to take stock. After a challenging but not disastrous 2023 for London’s prime central property market, the question is what is next?
To answer that we need to consider the major influences on 2023 which will contribute in shaping the coming year.
There was definitely a price reduction in 2023 but not necessarily to the levels that some doom mongers forecast. There developed a stand-off between buyer and vendor which resulted in lower than expected sales transactions throughout the first 8 months of last year.
The scepticism of the market was driven by rising interest rates through 2022/2023, the raging war between the Ukraine and Russia, high inflation and increase in living costs including fuel and food.
However, the last 4 months of 2023 provided good data with interest rates flattening out and being put on hold which resulted in a substantial increase in transactions and the market rallying.
We also saw a shift in attitude from both buyer and seller. Many vendors finally waking up to the fact that they needed to correct their price expectation. Buyers rather than looking to finance transactions via mortgage loans, were instead paying solely by cash. The anticipation of projected interest rates coming down in 2024, many buyers are looking to refinance and release equity when more favourable interest rates become available.
In 2024 we have already seen fixed mortgage rates come down based on loan to value. All of this has been made possible because inflation has come down in keeping with Government targets.
Later in the year there will be a General Election. This is something we will look more closely at in our Spring Newsletter.
So what can we predict for the Prime Central London market in 2024? We have not seen price growth in a number of years and the likelihood is that we will have to wait for this trend to change in 2025.
However, it is probably better to get your business done now whilst the underbelly of the market is still soft and good value can be found.
Vendors will need to remain realistic with their asking prices and at Plaza Estates we will be able to provide great guidance on the best way to achieve the highest possible price in the most efficient time frame whilst the market remains transitional. Using our experience, local market knowledge and enviable contacts over the last 52 years, will provide the best results for all our clients.
Buyers from abroad should remember the pound remains weak compared to its historic levels and overseas buyers should take advantage of this and transact whilst the currency rate remains stable but below its historic value.
In concluding there is much to be optimistic about for the coming year and let’s hope peace and harmony can be found allowing us all to thrive and enjoy the many amazing opportunities that we have.
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Eitan Fox
I started at Plaza Estates in 1986. Eleven years were spent successfully running the Marble Arch office. Subsequently, I was asked to take on the exciting challenge of running the Sales Department in our Knightsbridge office. I have built an experienced team with the ethos that local knowledge, hard work and professional service will always provide success to our clients. With ever changing technology of which Plaza Estates are at the cutting edge of, I have often been asked, with over 30 years in the business, how I retain my enthusiasm? I am delighted to say many of our multi million pound clients are genuinely my friends and I have a great passion for people. My staff and I never forget that this challenging industry ultimately is a 'Peoples Business'. Therefore I would welcome the opportunity to help you with your property needs and hope you will allow our fully equipped and motivated team to provide you with their professional assistance.
If you want 5-star reviews and want to remove negative reviews from Google, contact me via my profile; my contact details are listed there.
SM
Dear Eitan
In this whole sorry saga, with headbutting, unproactive lawyers, and a comatose estate agent etc etc, you have been a beacon of light throughout. Efficient, professional and responsive. This would never have got done without you.
Thank you.
All the best.
Maurice Shasha
We have been using Plaza Estates for many years for all our property requirements (sales, letting and management) and are delighted with the results and service they constantly deliver and provide!
KS
I generally dealt with the Marble Arch branch most of the time, but I can also say that the Knightsbridge office was also exceptionally helpful and professional on the occasions I did deal with them. Plaza Estates in general are excellent.
YZ
Have interacted with Plaza Estates across a couple of sites and always been impressed. Maurice must be the hardest working, most dedicated, helpful and knowledgeable account manager for any company anywhere! A real asset to the team!
LI
I have been a client of Plaza Estates for over 30 years and received excellent service. Both Rodney on the rental side and Fiona in the property management area have been have been attentive and helpful and always willing to go the extra mile on the few occasions when there were problems.
SA
Hope both of you are doing well. I wanted to thank you for always being there for us and for addressing our concerns promptly; safe to say you have been the best agents I have had the pleasure of interacting with.
KR
We have owned our Flat since 2008, which we purchased through Plaza. Our relationship with Plaza goes back to 1982 when we purchased a nearby flat and Plaza have handled all our lettings since then. I would have no hesitation in recommending Plaza - they will find you a good tenant and ensure your ...
MS
Thank you again for all your advice and calm attitude and charm. Nobody could try harder than you, and for which, we really thank you and appreciate it all, not just now, but over the years.
Thanks again for everything!
LT
Thank you for your kind help and your advice, it's been precious!
