This uplift in prices will be underpinned by the chronic shortage of housing in London.
Grainne Gilmore, head of UK residential research at Knight Frank, comments: “The prime London property market is buoyant, but there are pockets of London where the opportunity for development, and other factors such as improved transport infrastructure, gentrification or regeneration, combine to produce real opportunities for housebuilders and ultimately for those in need of housing.
“Crossrail, which will open in 2018, will have a strong impact on development in London over the next decade. Five areas of the 13 areas identified will benefit from the new high speed service, including Farringdon and the City of London.
“Comparing the current prices commanded for new-build developments in the hotspots with our forecasts for 2016 prices show that there is scope for these markets to outperform even the buoyant market for existing homes in Prime London areas.
“Our report also examines the shortage of new housing in the wider London market, underlining the pent-up demand which will continue to underpin the market.”
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