For many years, prime central London (PCL) has long been considered one of the best, if not the strongest, residential property markets in the world. PCL encompasses districts and London landmarks such as: knights bridge, Kensington, Belgravia, Mayfair, and Chelsea.
The market is characterised by depth in heritage, luxury, and safe investment opportunity. One factor that we at The Collaborative London, have all come to appreciate about PCL is its capacity for value maintenance and long-term stabilisation for many owners. However, recently with the global economy emerging we are now in a new phase – one which has also identified some trading opportunities for discerning investors.
Previously and over many years price adjustment and declines have been significant – prices are now circa 20% lower than peak value circa 2014 – creating opportunities for prospective buyers to buy residential property based on favourable discounted price.
This property price correction superimposed, by the recent weakness in the pound sterling, has presented opportunities for our international clients, specifically from the US and Middle East, to acquire prime property assets at significantly discounted prices.
We will discuss a few notable trends influencing the PCL market in 2025, while considering if this might be the perfect time to look at opportunities in this iconic and prestigious market.
The PCL market is diverse in its nature and has varying degrees of investment strategy:
- Ultra-Prime Properties
- New-Build Developments
- Refurbishment Opportunities
- Boutique and Heritage Assets
Decades of Constance, Worldwide Interest
In the public eye, Prime Central London (PCL) remains one of the world’s most resilient and prestigious property markets. Regardless of the economic and political fluctuations, PCL has shown a consistent long-term capital growth — inspired by global demand, cultural attractiveness, and limited supply. Even in declining circumstances, it exhibits consistency, bouncing back, stronger each time — justifying its reputation as a reliable long-term investment option.
Why Now Could Be the Right Time To Invest in Prime Central London (PCL)
We will show that now is a good time to invest into property in Prime Central London (PCL) with some historical and predictive data on PCL property prices and Gold and Oil prices.
PCL Property Trends (2014-2024)
- Chelsea: ↓ City -11.5% from £1699 to £1503/sq ft
- Knightsbridge/Belgravia: ↓ City -11.6% from £2269 to £2007/sq ft
- Mayfair/St James’s: ↑ City +8.4% forecasted to £2402/sq ft
While PCL prices may have fallen or halted — analysts are expecting property prices to increase again (PrimeResi).
Compared to Gold & Oil:
- Gold witnessed an increase from ~$1,200 (2014) to ~$2,000+ (2024), but now appears capped on any potential increased upside.
- Oil has been extremely volatile since 2014, providing no consistent value increase.
Insight: As gold and oil may have peaked, PCL property is still undervalued – it presents security and long term upside.
PCL current outlook a number of global investors are still interested in prime central London. Property prices have dropped but demand still remains strong. International investors are taking advantage of the relatively weak pound against the US dollar and other currencies to buy prime properties at discounts.
Key trends affecting PCL investment in 2025
Renovation Properties coming: international investors with a £10m budget see brick and mortar value in a property that requires a considerable refurbishment and has been available for a long period.
At present, construction costs are steady, and the investor can see the differences in price between fully refurbished and unfurnished property, allowing for future potential in adding value. Source: Winkworth
US Buyers are Rising: There has been an uptick in US buyers in the PCL investment space, with Knight Frank data stating that in 2024, US buyers made up 11.6% of the overall international buyers, which is greater than combined investment from China and Hong Kong. So why is there an increase in US investor buyers?
- Currency – since 2014, US dollar buyers of PCL properties have effectively received a 38% discount based on the price per property (source: buyassociationgroup.com)
- Market – the price per within 9 of the last 12 months has fallen 20.7% from the peak in 2014 and for certain areas like Earls Court, price falls have been greater than 26.3% (source: buyassociationgroup.com)
- Even with rising construction costs in the UK indicating inflation issues, London’s position as a centre of culture and central financial investment in a global market remains, leaving global investors on the lookout for a solid cash-rich market.
Future Market predictions 2025 onward
As we all know from the news reports on the PCL market, it is currently facing short-term pressure. This is around issues such as multiple jumps in stamp duty, and tax increases. But the future looks much more positive.
Savills have just made public a prediction suggesting a cumulative increase of PCL property value of 9.6% over the next five years – which is a lovely overall return for anyone thinking about entering the market now. (source: buyassociationgroup.com).
Eventually, investors all want to sell their asset and realise a profit on the total investment.
Final thoughts:
PCL property has always been a good property market to invest in – and despite a likely change in the wider economic context, many investors will still make a profit. Higher than average levels of yield and price growth attract buyers to the PCL market and will keep it a market that is consistently hot, and with high levels of international competition, and as such, largely price driven.
There are significant opportunities in the PCL marketplace – but profit is only one aspect of the complicated property development puzzle.
Investors entering such a popular property sector rarely consider all of the development issues relative to what their purchase currently offers, and then manage them all to somewhere approach a saleable and profitable investment.
Issues can be considerable. Not least managing the planning process, contractors, schedules of work, and the fact that you will almost certainly suffer delays (you will, especially as a first-time property developer in this market).
So, for property developers that are now seriously considering the hugely attractive Prime Central London property market, and would like to enter the market and capitalise on the opportunity without the potential stress and ambiguity – has continue to be a professional business outcome and as a trusted partner and collaborator, we have delivered outcome.
