Knightsbridge super prime market proves resilient

According to research from Harrods Estates, the luxury property division of the Harrods Group, the Knightsbridge super prime market has proved particularly resilient to the challenging economic conditions during the last year.

The average price in the super prime area is now £4 million, a significant increase since the beginning of 2009. However, while the level of demand may have stayed at a sustained level, it is the sources of this demand that have begun to see a change with an increase in interest from both European and Middle Eastern buyers.

Shirley Humphrey, Sales and Marketing Director at Harrods Estates commented: “The last year has been very challenging for all sectors of the property industry; however the super prime market in Knightsbridge has continued to command exceptional prices. The scarcity of super prime homes for sale in the area has boosted these price levels and we have also seen a change in the geographical source of buyers with more European and Middle Eastern buyers coming to the market potentially due to the weakening of the British pound.

“Knightsbridge has always been one of London’s most desirable areas to live in with the array of boutique shops and the world famous Harrods, which has led to the continued strength of its property market with prime property in very short supply.”

Harrods Estates has identified five main buyer groups that have grown in prominence over the last year with the highest demand coming from Greece and Saudi Arabia, ,closely followed by Oman, China and Qatar. In more general terms, the Middle East provided the highest increase in the number of purchasers during 2009 nearly doubling the increase from the previous year.

Shirley added: “If the market continues to see such levels of demand then we anticipate that prices will rise over the next year given the shortage of available properties for sale. Super prime purchasers are extremely discerning in their requirements and search for luxury homes with the highest levels of specification and amenities. Essential elements often include 24-hour concierge service, underground parking, excellent security and privacy whilst still being within easy reach of the Harrods department store – it is these types of homes that are always in short supply and will continue to drive values.”

For more information, visit harrodsestates.com.