By Gavin Gibbon
Three-bedroom property boasts views over Big Ben and other London landmarks
The resurgence in the UK property sector post the Covid-19 lockdown has been marked by the sale of a $9 million apartment in the centre of London by luxury developer Northacre, a wholly owned subsidiary of Dubai-based Shuaa Capital.
The high-spec apartment was sold at a rate of over $4,000 per square foot in Northacre’s first new-build and mixed-use project, ‘The Broadway’, on London’s Victoria Street.
The three-bedroom property, on the 14th floor, boasts views over Big Ben and other London landmarks.
According to Savills data, prime London property prices have slumped by around 20 percent since 2014, so the market is “relatively cheap” and ripe for leveraging currency play gains given the weak pound, Lucian Cook, head of residential research said.
Prime London residential property values are currently forecast to appreciate by 15.7 percent over a five-year period up to 2024, according to Savills data, while non-prime London residential prices are set to grow by a more modest four percent over the same period, the property firm said.
Shuaa Capital deputy CEO and Northacre executive director Mustafa Kheriba said: “We believe the global pandemic has definitely been acting as a catalyst for driving demand. The Prime Central London market was already in a robust position at the start of 2020 before the virus hit and appetite is expected to remain strong owing to the promise of security, stability and strong capital appreciation that this part of the market has always guaranteed.
“This, coupled with the changing environment for property development including a shrinking workforce following Britain’s exit from Europe, will impact the availability of stock that will, in turn, limit stock and push up demand.”
Northacre, which reported a threefold increase in sales enquiries in H1 2020, is currently working on two big Prime Central London developments: The Broadway and No.1 Palace Street, both in SW1.
Kheriba added that the decision by UK Chancellor Rishi Sunak to implement a two percent Stamp Duty Land Tax surcharge on international buyers of UK real estate will create additional momentum for upcoming transactions before the measures come into force in April next year.
“We remain positive in our predictions for the Prime Central London market as we note a three-fold increase in sales enquiries from a wide demographic across all parts of the globe,” he said.
The Broadway occupies the 1.72-acre former New Scotland Yard site and is due for completion in 2021.