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1 The election dust has settled. The London residential and commercial property market is set to charge ahead again almost before you can blink! Look forward to excellent growth prospects over the next 5 years. And the long hard NY winter is over with a very strong and positive start reflected in Q1:2015 data. Stock shortages are becoming the big issue now. May 2015: Market Update Post Election Market Response London New York Dubai : acquisition : sales : lettings : property & asset management : : investment : development : project management : : residential & commercial property : (UK) London: +44 (0) (USA) New York: May 26th, 2015 In This Issue London Sales Market London Commercial Market Q1:2015 Manhattan Market Update Sales Market: London & UK Strong 5 Year London House Price Growth Ahead Housing Market Already Rebounding On Conservative Election Victory As the dusts settles and the market breathes a huge sigh of relief following the outright Conservative election victory, house prices are set to take off again. 1/7

2 The threat of a "Mansion Tax" has been removed as has the reintroduction of archaic and draconian "rent controls." And artificial "Stamp Duty" hurdles have already been removed smoothing out the market. Excellent investment and owner occupier market return conditions are now back in place. Deflationary pressures are likely to be short lived and the forthcoming rise in London house prices in particular will provide exceptional short and long term returns. And London rents are picking up again, around 4% in some central locations over the last 12 months, continuing the good news forecast for professional investors. end of the year. Interest rates are very likely going to remain at historic record lows until the There will be a 2 tier London market ahead: Super Prime Central London: Historic prime post codes in Knightsbridge, Westminster, Mayfair, Kensington and Chelsea. Pure "Safe Haven" territory. Good solid growth ahead probably ranging from 3% 5%pa. Not spectacular, however very safe and low risk. Ideal for overseas buyers and investors who favour London's "traditional comfort zone." "New" Prime London: All those wonderful London boroughs and locations such as Hackey, Lambeth, Wandsworth, Newham, Bromley, Brent, Ealing, Acton and Hillingdon (just to mention a few see Land Registry table above) where record growth has been taking place for the last months, before going "on hold" in the run up to the General Election. Curzon expects to see outstanding investment opportunities continuing across these locations. This is driven by the desperate housing shortage and "local affordability issues" in the Capital and across SE England generally. 2/7

3 This is combined with the well advanced 16bn Crossrail infrastructure project opening in 2018 which will slash travel times in to Central London together with the Thames Link extension running North to South. Double digit growth can be expected to return across many of these locations. Source: Curzon, HM Land Registry, Crossrail Thameslink 3/7

4 6/21/2015 archive.constantcontact.com/fs180/ /archive/ html Commercial Market London Commercial "Bull Market" Charges On London's West End Is The Worlds Most Expensive Office Location London's West End remains the world's most expensive location for office space at $29,000 ( 18,675) per workstation nearly a third more expensive than second placed Hong Kong. Prime West End office rents hit a new record of psf with the recent letting 4/7

5 of the top floor 8 St James's Square. Yields continue to strengthen across the capital and are just 3.25% in the West End and 4.25% in the City, with downward pressure continuing. With national planning policy now very much in favour of the conversion of commercial properties to residential (the math is a non brainer as prime residential is often so much more valuable), there is an increasing shortage of Grade A office space. New office construction in London is now 24% higher than it was 6 months ago with 9.4m sf of new office buildings under construction. Many London developers are also now focusing on the extended reach of Crossrail to draw potential commercial tenants in to their schemes. Expect a strong London commercial office market ahead, with a pick up beyond the capital with healthy regional competition kicking in. Battle lines are being drawn! ource: Curzon, DTZ, Savills, Property Week, Deloittes Q1:2015 Manhattan Market Off To A Strong Start Strong and Steady Performance Continues in to 2015 The beginning of the year typically sets the tone for the Manhattan market and this quarter the results were positive. First Quarter 2015 exhibited the highest number of sales for any first quarter in over six years. The Manhattan market continues to strengthen. Stock shortages are the biggest problem which in turn will put upward pressure on prices ahead. 5/7

6 Rental demand continues to remain strong with both in bound domestic and international tenants, especially those from the Corporate Relocation sector being prominent. Rental yields are approaching 4%pa. Average sales prices in Manhattan are close to $2,000 psf. Source: Curzon, Corcoran Please contact us for further information: Curzon Real Estate LLC New York City & Tri State Area Paul A Soley CRP, GMS Co Founder & Managing Director Curzon Real Estate LLC paul.soley@curzonproperty.com DL: /7

7 Paul A Soley CRP, GMS ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Curzon Property Consultants & Chartered Surveyors London : New York : Dubai :...and acquiring for clients in Geneva : Zurich : South of France : Sydney : Sincerely, James Moss FRICS, FARLA, MCIArb. Managing Director, Curzon London Office: James Moss, FRICS, FARLA MCIArb. UK website: 7/7