London faces plunging home prices as remote work continues to rise

The City of London is grappling with a dramatic slump in property values, leaving investors and homeowners questioning the future of this once-thriving residential hotspot.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, the Wall Street Journal reported.

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.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.” For nearly two decades, the City was a beacon for property investors.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.” The result is a buyer’s market where homes that once sparked bidding wars now struggle to attract attention.“When I started, you could literally put a property on the market on a Friday, book in 10 viewings over the weekend, and have a sale agreed on the Monday,” Karl Graham, head of sales at John D Wood & Co.

told the outlet.“Now it is the other way around.

You have five properties for every buyer.” Peter Brewer,...