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Why is the London Property market consistently stronger than analyst’s predictions? Mark Wells, Director of Homes One WHY IS THE LONDON PROPERTY MARKET.

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Presentation on theme: "Why is the London Property market consistently stronger than analyst’s predictions? Mark Wells, Director of Homes One WHY IS THE LONDON PROPERTY MARKET."— Presentation transcript:

1 Why is the London Property market consistently stronger than analyst’s predictions? Mark Wells, Director of Homes One WHY IS THE LONDON PROPERTY MARKET CONSISTENTLY STRONGER THAN ANALYSTS’ PREDICTIONS? MARK WELLS, DIRECTOR OF HOMES ONE

2 TODAY’S PRESENTATION Who we are Past Predictions and Past statistics Why has London Property out-performed expectations? What does the future hold?

3 PROPERTY CONSULTANCY KARIM BAZZI AND MARK WELLS

4 HOMES ONE Independent property consultancy based in central London. Working for local and international clients looking to purchase their dream homes or property investments in London. Karim Bazzi Founder, 2005 High end acquisitions, homes in excess of £10,000,000, acquires large development Arabic speaking Mark Wells Decade in top agencies, including Savills 4 years in 'Prime Houses Team' of Savills' most profitable office Purchased Saatchi's flat’s on Eaton Square

5 THE PREDICTIONS VS WHAT REALLY HAPPENED

6 THE LAST 5 YEARS

7 THE PATTERN London Property Analysts have predicted that prices are likely to stagnate or fall a little In reality they have increased by more than 50% since 2008

8 WHY ARE THE ANALYSTS’ MAKING THESE PREDICTIONS? Use traditional methods of prediction Affordability, availability of mortgage finance, bonus payments, employment in the City Prices are sky high Are we looking at a bubble?

9 WHAT IS BEING OVERLOOKED? Long time investment keeps supply low Foreign investors seeking sanctuary Global recognition of growth over time ‘Buy in London. Even if prices seem high, you will benefit in the long run’

10 IS LONDON PROPERTY SIMILAR TO A LUXURY BRAND? Surely past success is no guarantee of future success? We believe success over such a long time has made London property an asset class most similar to a luxury brand

11 BRAND LONDON Strong, safe long term investment. Watchmaker’s slogan ‘You never actually own a Patek Phillippe. You just look after it for the next generation.’ Marketing platform. Olympics, the Jubilee, the Royal Wedding, and possibly even our position in Europe No other city that has achieved its global reputation, with the exception of New York, which is not currently renowned for welcoming foreign buyers

12 “You need to be rich to join the club.” Disparity between what London prices should be on paper, and what they really are People pay more for a brand they can trust Brands are built up over time and are resilient According to the brand, people with property in central London are wise, discerning investors. They have bought, and can afford, a luxury item that will pay them dividends over time. Yes, you need to be rich to join the club, but where luxury brands are concerned, that’s never a bad thing

13 WHAT DOES THE FUTURE HOLD?


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