We have finally moved into a buyer's market
Autumn outlook
The situation in Lebanon and Gaza continue to deteriorate, marking one of the toughest periods in the Middle East in recent memory. It is deeply heartbreaking and personal for me to witness the loss of innocent lives and the displacement of so many people. This was one of the core reasons I do what I do; to help people find a home and base to build their lives in the midst of turmoil and uncertainty.
The feeling of powerlessness is overwhelming, and it's a sobering reminder that the silent majority on all sides around the world fervently pray for an end to these conflicts. We all know that the people deserve so much better, and it is clear that hatred and violence are never the answer.
Please donate to UNHCR to help provide lifesaving relief.
One of my clients said something that stuck with me. “The solution will arise and it will come from a perspective none of us can see today. It is our duty to take the opportunity when it arises.
We have finally moved into a buyer's market
In contrast, London has experienced a vibrant summer in 2024. The city feels energised, with a sense of renewed hope. The installation of a new government has brought a cautious optimism, as many hope for more competent leadership after recent challenges.
However, beneath the surface, there is significant economic concern. The upcoming October budget, with its anticipated tax increases and the potential end of non-domiciled status, has many clients rethinking their future plans. This uncertainty is reflected in the property market, where we are seeing price reductions in developments that have traditionally held their value. Such opportunities have been rare in recent years, suggesting a shift in the market as stock levels begin to ease.
Over the past month, I’ve been exceptionally busy with varied and interesting searches, from large hotels and serviced apartments to clients looking for holiday homes and downsizing opportunities.
There are some hidden gems to uncover right now for those closely connected to the market at all levels.
What’s happening in the market
A summary from four of the largest agents
Resilience in Prime Markets:
Despite economic and political uncertainties, the Prime Central London (PCL) market has shown resilience, especially in the high-end segment. Both JLL and Knight Frank noted that while there have been price declines, particularly in lower price brackets, the upper end of the market remains robust.
Increased Supply and Stable Demand:
There has been a significant increase in the number of properties on the market, with stock levels rising by 19% year-on-year according to JLL. However, demand, especially for high-end properties, remains stable, driven by a mix of domestic and international buyers. This could present opportunities for buyers seeking a greater selection of available properties.
Impact of Tax and Political Changes:
The potential overhaul of non-dom tax rules and other proposed tax changes by the new Labour government have created some uncertainty. However, the market's reaction has been cautious rather than panic-driven, with many high-net-worth individuals waiting to see the final details before making decisions.
Shift Towards Rentals:
With ongoing political uncertainty and higher mortgage rates, there has been a noticeable shift towards renting among prospective buyers, bolstering the rental market. CBRE and JLL both highlighted increased activity in the lettings market, with rental values remaining stable or growing modestly, especially in the high-end segment.
Long-Term Optimism:
While the market has faced short-term challenges, long-term prospects remain positive. Both Savills and Knight Frank forecast a recovery in the London property market, with expected growth in the coming years as economic conditions improve and political clarity is achieved. This suggests that now might be a strategic time for foreign buyers to consider entering the market.
Atelier NM
Nominated for SBID Awards 2024
We are thrilled to announce that our sister company, Atelier NM, has been nominated for the prestigious SBID Awards for the second year in a row! Last year, Atelier NM won the award for their stunning work on Palace Gate, a property acquired by Homes One. This year, we are hopeful for another win with their exceptional project in Belgravia.
The team have transformed a tired Belgravia apartment into a tranquil family sanctuary. The design balances bold expression with sophisticated elegance, featuring calming color palettes, soft textures, and bespoke detailing. High-quality materials and craftsmanship seamlessly blend the apartment’s original features with contemporary design, creating a luxurious and serene retreat that reflects the family’s unique tastes. are proud of their continued success and are excited to see what this year’s awards hold!
Trips to the region
I will be coming over to the UAE In late October and Saudi in Late November and would love to meet.
I look forward to seeing you there.
Concluding thoughts
As well as being primarily a buying agent increasing numbers of clients are asking me to assist with managing their sales or lettings. The advantage of using me in this is that you will have advice you can trust and I can manage the sales process and of appointing the strongest agents with no cost to my clients. You get me for free!
Please do get in touch.
My business is made on referral so please do pass details onto friends and colleagues for a free consultation and I look forward to welcoming you at my offices at 96 Kensington High Street W8.
Enjoy the Autumn!
Warmly,
Karim