1-bed apartments are popular in London, where real estate prices are among the highest in the world, and now they continue to command a premium price.
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This soaring demand for 1-bed flats is pushing their prices upwards, and it is estimated that by 2019 it will be difficult to find such apartments for anything less than £200,000!
Already, the price of 1-bed flat in majority areas of London is nearing £200,000. Real estate adviser JLL has come up with interesting insights into the 1-bed apartments market in the capital. Data collated by JLL reveals that at the end of 2016, only 12 per cent of London postcodes had an average of less than £200,000 for a 1-bed flat.
“But if current price growth trends continue, within 3 years there will be no postcodes left in the Capital with typical first-time buyer properties averaging below £200,000,” JLL said in its latest London Residential Heatmaps report (which captures the growth in prices of houses in the capital).
The research found out that a critical supply-demand imbalance compounded the affordability issues faced many aspiring house-buyers in London. Consequently, more and more first-time house-buyers are turning to the outer boroughs of London in search of better value housing.
However, this new wave of demand for accommodation is creating significant price growth in London’s outer areas, and it found to be more than the wage growth of the house-buyers.
These findings throw up interesting analysis, as many working professionals are buying 1-bed flat in the city, as well as the outer boroughs. Besides, working professionals can afford deposits sufficient to buy only 1-bed apartments. Many of the working professionals prefer homes closer to their workplace, and hence 1-bed apartments are in demand.
Another factor fuelling the demand for 1-bed apartments is the rising prices of 2-bed and 3-bed apartments in London. Younger working professionals initially prefer moving into smaller accommodation and later into bigger ones depending on their requirements. Most of them are also of the view that instead of paying high rents in central London, it is advisable to buy 1-bed apartments.
A large chunk of international travellers and business community also prefers 1 bed-apartments. It is also in great demand from the serviced apartments sectors for short lets.
If you are keen on acquiring 1-bed apartment in some of best areas of London, Strawberry Star can help you find one. Call any of our global offices to connect with our property professionals for a meeting.
Image Source: Vauxhall Sky Gardens