London property prices could rise to £10,000 per square foot by 2016

London property prices could soar by 2016 where residential properties may cost as much £10,000 per square foot, as stated in a research report recently released from Knight Frank.

The report refers to One Hyde Park, a property of 86 luxury apartments in the heart of London’s Knightsbridge, which is considered one of the most expensive properties in the world. The value throughout the duration of the development has increased from £4,560 per square foot in 2006 to £7,500 per square foot in late 2011.

It is thought that connections with luxury brands, such as the Mandarin Oriental Group and Candy and Candy Interior Design, and the use of the best timber and marbles, as well as highly-trained concierge team lead to the increase in value. Furthermore there is a huge demand from wealthy citizens from abroad wanting to buy London property which further pushes up prices.

However, The likelihood of another property development on such a scale is low, due to a lack of funds.

Liam Bailey, the head of residential research at Knight Frank states “I suspect this record will be broken even sooner and that the very best developments will be sold with prices of £10,000 per square foot sometime before 2016,’ he added.

Photo: Flickr/Uli Harder