Despite slow growth and even dips in property prices across the rest of the country, prime central London remains the exception to the national rule.
Prices have now risen, on average, around 16.5% since the financial crash. This has been attributed to wealthy foreign investors from Russia, India and the United States pushing prices up in the capital.
South Kensington drew the highest level of demand, closely followed by Knightsbridge, Hyde Park and Belgravia.
The research even showed that the property market was outperforming those in New York and Paris, with only Jakarta, Hong Kong and Beijing house prices rising faster.
Liam Bailey, global head of residential research at Knight Frank, said:
"London's reputation as a global financial centre, its political stability and transparency, as well as its lifestyle benefits ensure it remains a popular choice for the globetrotting elite.
The crisis in the Eurozone has only served to boost interest in the city among Europeans with buyers from Italy and France the most active Europeans in the market in 2012.
Sales to Russians, US and Indian buyers remain the most prevalent, however. Between them they made up over 15 per cent of all sales last year."
source www.naea.co.uk
