The ultra luxury real estate market in London seems to have gained due to the economic downturn. The weakening of the British Pound has attracted the overseas rich to London as a favorable exchange rate makes it feel like a haven for their wealth. The positive trend and the resulting growth in demand has spurred the developers to invest in new luxury projects and today London has a healthy pipeline of luxury-home developments valued at about 21 billion pounds which is close to $34 billion.
The quick growth in demand, particularly from the overseas buyers has pushed the prices to a record level and attracted huge investments in new and ultra luxury projects. The ambitious projects will take time to fructify and there are projects that will keep coming to the market till the end of the decade. EC Harris LLP, the London based consulting firm who have studied the market extensively, feel that the investors and developers will be building 9,000 prime apartments and houses by the end of the decade. Most of these projects are being developed to be sold for 1,000 Pounds per square feet or more.
About 4,000 units are in advanced stage of construction and should be ready for occupation by 2014 and 2015. Mark Farmer, head of private residential consulting at EC Harris feels that it is important for the developers to understand the specific and unique requirements of the buyer who is going become more and more discerning in the future. The foreign buyers are estimated to invest about 3.7 billion pounds in the London prime properties this year alone. Their requirements could be varied and somewhat different from the traditional British tastes. The prominent new prime projects in London are the revamp of 10, Trinity Square, opposite the Tower of London which is being developed by KOP Properties Pte. Ltd., and the conversion of former U.S. Navy building on Grosvenor Square to luxury apartments by Richard Caring.