Liam Bailey, global head of research at Knight Frank announced the re-analysis of 20 major international cities in the light of the COVID-19 crisis.
It emerged that 16 of these cities will see flat markets in 2021 or low drops – up to 5%.
Only four cities will see rises in their property markets, of which London and Lisbon lead the pack.
Political certainly in UK brought about by the General Election last year boosted confidence in the London housing market making the outlook the best it has been for many years. This will make the city see a revival in growth in 2021.
Most analysts expect a recovery in London through 2021 and beyond.
CBRE have predicted that pent up demand will increase activity.
Chestertons and Savills believe London will lead the 2021 recovery. Chesterton’s expect 3 to 4% growth in Central London. Savills expect 15% growth over the next five years.
Nationwide’s chief economist, Robert Gardner sees prices rebounding after the crisis thanks to good economic measures the government has put in place during the pandemic which will help businesses, buyers and homeowners.
Lisa Bathurst, International Property Expert at Hurts and Wills states “The fundamentals of property investment still apply”.
There is an undersupply of housing in the UK and the government remains committed to addressing this. With very low new build rates coming through in 2020, low inventory and low interest rates, it is less likely that we will see price falls.
The strong growth we saw before the crisis has provided a solid foundation for the market to bounce back on.