Market Update - Central London Residential Sales Market Summer 2011 [source: Cluttons London View]

Average capital values for all property types across Central London passed £1.6 million for the first time since Q3 2008. Sales prices rose by 3% during Q2, following 2.2% increase in Q1. Some sub-markets such as Hyde Park and Mayfair experienced higher growthl 7% and 8% respectively. The best performing market over the quarter was Central West, where home values rose by 4.6% to £2.24 million. The smallest change was recorded in Central South East, where prices grew by just 1.6%.

There has been an upturn in the number of Middle East buyers, who have surpassed the Chinese in terms of size. The continued unrest in the Middle East and North Africa is forcing buyers to secure their funds overseas and the delay in entering the London market has been attributed to complications in liquidising assets in their home countries. There are signs that this will gradually be resolved during the summer, with an upturn in Middle East funds targeting Central London property, particularly as this is traditionally a period of investment activity amongst this group.