London Luxury Real Estate Continues To Slide

I mentioned last month that luxury property in London wasn't doing so well and the latest news reflects that it is getting worse. The Wealth Bulletin reports that luxury residential property in London fell 3.7 percent last month which is the second highest monthly decline on record. The drop had much to do with new weakening in what is dubbed the "super-prime market," properties over £10 million. Real estate agent Knight Frank reports that prime London prices fell 21.4 percent since March 2008 peak, and properties in the £1million to £2.5millon range fell 25.3 percent over the same period.

The super-prime £10m bracket which has appealed to foreign buyers, particularly from Russia and the Middle East is said to have lost 20 percent in value in the five months since September. Knight Frank predicts that the bottom should be hit pricewise sometime in the middle of the year but has revised their prediction downward from 30 percent off peak to 35 percent.

Should you still be flush, the property above, a detached Victorian villa in the heart of Kensington is listed at £24 million with Knight Frank. it is need of renovation and there is planning permission to extend the current size of the home from an already large 6143 square feet to an expansive 11,438 square feet.