London's financial district, the City, is facing a significant property market downturn, with prices falling over 10% in 2024, outpacing inner London's 2.5% decline.After years of steady growth, with property prices climbing 40.5% between 2013 and 2022, the City, located in London’s financial district, has seen a sharp reversal. Sale prices in the area have tumbled by more than 10% in 2024 alone, far outpacing the modest 2.5% decline seen across inner London during the same period.
Buyers are now favoring traditional neighborhoods like Mayfair over the City, which no longer offers the value it once did.The City “has really died a death,” Tom Kain, a buying agent with Black Brick told the Journal. “That whole environment where people worked in the City for really long hours and wanted an apartment there is just not what people do anymore.”Housing shortage eases with 4-year-high jump — but the reason why is nothing to celebrate The completion of The Heron, a landmark luxury residential development in 2013, transformed the area from a purely commercial hub into a desirable residential enclave.Developers rushed to cash in, launching high-end projects like One Bishopsgate Plaza, and adding a new wave of trendy restaurants and bars to attract well-heeled professionals. But the rise of remote work, shifting buyer preferences, and rising interest rates have cooled demand. “People are more open to commuting if they only have to be in the office a couple of days a week,” Nick Verdi, a director at Savills told the Journal. “And at the same time, there is definitely more supply. A lot of stock has been built in the past 10 years.”Once a thriving residential hub thanks to developments like The Heron, the area has seen demand drop amid remote work trends, oversupply and rising interest rates.The result is a buyer’s market where homes that once sparked bidding wars now struggle to attract attentio