No doubt, these factors also contribute to the reason why despite — or perhaps because of — the threat of the eurozone crisis boiling over across the English Channel, London property continues to be popular with foreign investors. International buyers continue to hold up the prime London residential market, accounting for about 55% of prime central London sales in 2011 — 3% higher than in 2010 — figures from property consultants Savills show. Property agents believe the eurozone crisis has had a positive effect on house prices in London, which has seen an influx of super- rich buyers from stricken countries such as Italy, Spain and Greece.

 

And as investors — both foreign and local — increasingly see bricks and mortar as a safer alternative for their money in the long term, there are several interesting trends in London property this year for their consideration. Riverside living is a new property niche as the Thames River becomes a focal point for this year’s celebratory events. There will be new transport piers and public spaces such as a futuristic floating boardwalk along the Thames shoreline between Millennium Bridge and Tower Bridge to be built in time for the Olympics. All this has generated much interest in riverbank regeneration projects in the Royal Docks, Vauxhall/Nine Elms and South Bank areas. The latter two locations are in Knight Frank’s list of 12 central London hotspots with real price-growth potential over the next five years.

 

Another developing trend is the link between residential and retail property, as more Londoners are reportedly moving closer to their favourite shops. The Evening Standard says this is a growing trend in established London neighbourhoods such as Marylebone, Bloomsbury and Fitzrovia, where development projects incorporate designer homes alongside retail space.

 

This is in line with the strong link between luxury shops and luxury property, as seen in London’s most expensive SW7 postcode, which includes Knightsbridge and South Kensington. Here, high-end residential developments offer concierge services and the fine-dining facilities of neighbouring five-star hotels such as One Hyde Park and the Mandarin Oriental next door. And the upcoming Bulgari Hotel and Residences is believed to be the first new-build luxury hotel in London in more than 40 years when it opens this spring.