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Prime London property prices up 33% since credit crunch

The Knight Frank Prime Central London Index also shows that prices have risen 33% since their recent post credit crunch low in March 2009 and are now 1.3% higher than their previous peak in March 2008.
Foreign demand remains a key driver of price growth, favourable exchange rates mean overseas buyers are benefitting from significant discounts. In effect pries are 17% lower for buyers in US Dollar buyers and 16% lower for euro buyers on 2007 pre-crash prices.

Liam Bailey, head of Knight Frank Residential Research, said that price growth in the prime central London market shows little sign of slowing at the current time. Aside from a brief stumble last autumn, prices have been rising strongly since April

‘While prices have now risen by a third from their low point in March 2009, foreign buyers are still buying at a discount when they factor in currency movements. Despite a slight strengthening in sterling since early 2009, and the recent strong growth in prices, the typical buyer purchasing a home using euros will find that prime London property is 16% cheaper than in September 2007 when the financial crisis started. Buyers using US dollars or a currency pegged to the greenback will benefit from a 17% discount over the same period,’ he explained.

The research also shows that while Asian buyers account for the majority of sales of new build properties in the capital, accounting for 60% of zone 1 new build sales in the six months to April 2011, European buyers are among those at the forefront of the market for existing homes. In terms of non UK buyers French buyers account for 6% of the market, Italians 4.5%, Greeks 3.1% and Swiss 2.5%.