Homes One March newsletter: Spring Market 2024
Spring Market 2024
Update and outlook
I heard recently that it is scientifically proven that our mind needs 4 positive thoughts to cancel the impact of 1 negative thought. This seems to explain something I have always been aware of.; it’s so much easier for us to focus on the negative. We are almost drawn to it physiologically.
Our tendency to pay more attention to bad things and overlook good things is likely a result of evolution. Earlier in human history, paying attention to bad, dangerous, and negative threats in the world was literally a matter of life and death. Those who were more attuned to danger and who paid more attention to the bad things around them were more likely to survive.
One of the best antidotes to this is to surround yourself with positive people and write a list of things you are grateful for each day to shut out the noise; I do it every morning. Mindfulness can also be a very strong tool to really check our thinking. Is our situation really that bad?
Thankfully I have some GOOD NEWS… The London property market is more buoyant and lively then it has been for at least 6 months. I have personally witnessed two best bids, two properties being gazumped, and properties that have been sitting on the market for months finally getting decent offers - all since December 2023.
Why? Property update...
Financial outlook
I think the main factor is that there is a perception that interest rates are falling and will continue to do so. Inflation has fallen from over 10% a year ago to just over 4% now in Feb 2024.
In turn mortgage rates are falling and will continue to do so over the next 12 months. This means that the buyers who had put their searches on hold last Summer and Autumn have returned and the buyers who were always planning to start looking have also joined them. More demand and still a lack of instructions.
The next factor is that with the general election looming and likely to be in Autumn/Winter 2024 many clients want to buy or sell while they know what the rules and taxes will be. Unfortunately stamp duty is more likely to go up than down under the next government (which is likely to be labour) so if you are thinking about buying in the next 12-24 months, use this next 6 month window.
There are pockets of London that suffered during Covid; think Knightsbridge, that now represent relatively good value.
Dubai
Building for the future
In February I travelled with our sister interior design company atelier-nm.com to Dubai to meet with clients and have a catch up. The market there is still in the growth phase, welcoming foreign investment and building for the future. Savills have reported a 15% rise in the property prices there. The mindset is positive and the country is constantly maturing; it never ceases to amaze. If you have not been there, drop the preconceptions and visit. It’s a remarkable achievement in its golden period.
The good news is there is still a lot of interest from there and the region in the London market.
After all London is still the best city in the world; for many people and certainly at certain stages of life. If you want to discuss anything property related please visit my HQ at Pavilion Kensington or drop me an email or WhatsApp.
And finally…
I'm back at The Pavilion in Kensington High Street for much of the working week - and we now have a Knightsbridge branch with a terrace and views over the park. Call me to catch up - and I'd be delighted to see you if you are in either of these areas.
Please do get in touch to set up a coffee and catch-up.
Warmly,
Karim