New developments of luxury homes in the London have continued to rise, recording a 40% increase over the past 18 months.
The news comes despite a fall in the sale prices for luxury homes in the capital.
An incredible 19,000 units are under construction in inner London areas, with a further 35,000 homes in the development pipeline. It is hoped that the new homes will help to address the shortage of housing across London but there are also concerns that there could be too many luxury properties on the market, especially with a weakening demand demonstrated by falling prices.
Luxury new build apartments in particular have seen a continuous decline over the past 3 years with the first quarter of 2016 recording a drop in sales ahead of completion, to just 5,947.
The figures have led some industry experts to believe that a number of luxury property schemes will be reviewed by developers to take into account the changing market place. Modifying plans for new homes to instead become office spaces or cancelling projects altogether could be likely outcomes.
Around 13,000 of the proposed new homes are in the SW8 postcode area which includes South Lambeth and Nine Elms, as well as parts of Vauxhall and Battersea. The Nine Elms area in particular will see lots of new development as it is currently home to the largest residential construction site in London.
Of the 13,000 proposed homes, just over 4,000 have started on construction work meaning most of the proposed projects could apply changes to their plans to fit the evolving luxury housing market.