- The highest value recorded by the Land Registry over the past 12 months was £26,500,000 for a flat and £36,950,000 for a house
- 92.9% of homes let in the past 12 months were flats.
- Rental values have increased by 11.8% in last 12 months
Knightsbridge is one of London’s most sought-after locations in the city, with its garden squares, green space, quality housing stock, premium shops and restaurants, and excellent transport links.
A desirable location
The exclusive properties attract domestic and global high-net-worth individuals looking for a London base, investment property, or home. With Hyde Park on the doorstep and cultural activities, it’s no surprise the highest property value recorded by the Land Registry between 1 July’22 and 30 June’23 topped £26,500,000 for a flat and £36,950,000 for a house (Source: Dataloft).
Renting flats and houses in Knightsbridge is another way to live in the affluent location. Over the last 12 months, the Land Registry recorded the lowest monthly rental value at £2,448 for one bedroom and the highest at £43,333 pm for a four-bed on the 3rd floor in the opulent One Hyde Park (Source: Lonres).
Moving past uncertain times
Over the last few years, the housing market has faced uncertainty from political turmoil, Brexit, tax changes, and the pandemic. These factors have caused fluctuations in the property market, and Knightsbridge has been no exception.
Prices are back on a trajectory, increasing by 0.8% in the last 12 months but still down 5.4% from 2018 – offering buyers the opportunity for a growing investment.
Housing demand
In Knightsbridge, 92.9% of properties are flats, and 7.1% are houses. In the last 12 months, Dataloft finds that 269 flats were let, with 30.6% being two-bedroom flats, 28.4% one-bedroom flats and 27.2% three-bedroom flats (Source: Dataloft).
Between Jul ‘22 and Jun ‘23, vendors sold 249 properties in the Knightsbridge area. In total sold properties, 80.3% of sales were flats, and 19.7% were houses, with Ebury Bridge Road, SW1W being the most popular for transactions (Source: Dataloft).
A positive performance
In the last year, data shows that Knightsbridge is a positive place to invest in for domestic and global buyers. With house prices selling at a reasonable price for prime London and in high demand from renters, investment landlords can expect positive yields and reduced void periods. Those looking for a London base or home can enjoy the growth from flat prices in the area.
International buyers
With cultural amenities close by and a welcoming community, Knightsbridge has had a long-standing international market. With the weakened pound, more international buyers are investing in the prime London location and seeing an impressive return.
Over the last 12 months, the lowest sold price fetched £975,000, and the median sale price for property in the area is £2,178,603 compared to £2,097,548 the previous year (Source: Dataloft). With houses bringing an average of £6,261 pm and flats £4,331 pm – rising by 11.8% in the last year – there’s a good investment opportunity for international investors looking to take advantage of the current market.
International buyers also look to Knightsbridge for a second home to enjoy the proximity to London’s main attractions and transport links.
Future of Knightsbridge real estate
While the last few years have seen uncertainty in the property market – even in Prime London – we see a strong future for both sales and lettings. From 1 Jul ‘22 to 30 Jun ‘23, the total sales value for the area was £745,669,814, with 249 properties sold – the most since Brexit in 2016 spooked the super-rich from investing in prime London.
While properties here are at the top end of prime London, the rental market is buoyant, and investors can enjoy impressive returns.
In the coming years, we expect the market in the area to remain strong, backed by the fact flat prices have increased by 8.1%. With oil prices rising, we will likely see demand from Middle Eastern buyers. However, with upcoming general elections, we may hear of concerns from investors.
Final takeaway
Despite political uncertainty, international buyers looking for second homes and investments highly regard the capital city. With demand for rental flats high, and impressive yields to fetch, Knightsbridge makes for a sound investment for domestic and international buyers.
Contact Knightsbridge estate agents and lettings agents for a free and accurate property valuation today.
Note: The following postcodes have been used to define Knightsbridge - SW1W 8, SW1W 9, SW1X 0, SW1X 7, SW1X 8, SW1X 9, SW3 1, SW7 1.
