A new study by Investec Private Bank has revealed that a projected £6.4bn will be generated from the sale of prime new builds.
Such developments contributed £5bn to UK prime property sales in 2017, while the average prime new-build property sold for £2m.
Kensington and Chelsea, Lambeth and Camden are forecasted to see the biggest increases in the value of prime market in 2018.
However, the research has found that there is a diversification in the market towards east and south London, Manchester and Cambridge.
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Investec’s prime property hotspot projections
Ryan Tholet, head of Investec Private Bank, said: “The combination of value and location is what makes a property ‘prime’ and it is clear that the new builds which are driving the expansion of the UK prime property market overlap with areas that we have identified as experiencing – or due to experience – high levels of investment, from developments such as Crossrail, for example.
“For high-net-worth (HNW) individuals looking to diversify investments or expand their property portfolios, keeping an eye on new-build growth will give them the edge.
“HNW investors recognise that the boundaries of prime property hotspots are becoming ever more elastic, with 68% stating that: ‘Buying in a trendy area has become more important than 10 years ago’, and it is fascinating to see this realised in the strong market growth we are seeing in areas such as Manchester, with strong business development driving foreign as well as domestic investment.
“However, it is also encouraging to see London’s traditional prime property market show little sign of bottoming out.”