The latest residential research by JJL, formerly known as Jones Lang LaSalle, has revealed that development activity continues to intensify in Central London’s residential market.
Almost 22,000 units are now under construction, up 15% during the first six months of 2014, and twice the total of two years earlier.
During the first half of 2014, the number of new unit sales across Central London went up by 4%. Additionally, prices continue to rise, with yearly growth at 13.7%. However, the heat has been taken out of the market slightly due to buyers becoming more discerning during the summer months. JJL, though, believe the market is now more stable and sustainable given the recent cooling period.
In Central London, an emerging trend is that the market is ‘moving out’. When it comes to price growth, sales activity, development volumes and developer preferences, there is now a clear bias in favour of ‘Outer Core’ locations in comparison to ‘Core’ or Prime Central London markets.
JJL expects price growth in Central London developments will ease to 8% per annum by the end of 2014, cutting back to 6% in 2015. They also predict that completions will edge towards 10,000 units in 2015, the highest level seen since pre-recession 2008.
Neil Chegwidden, Research Director in the residential team at JLL and author of the report, said of the activity in the Central London development market: “The Central London residential development market remains robust underpinned by an occupational demand still unmatched by supply and continuing domestic and international interest.”
Yesterday JLL announced a merger with high-end single office central London sales and lettings agency W A Ellis.
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