City bonus postcodes - No.3: Knightsbridge, SW5

Knightsbridge arguably ciontains London's most expensive postcode but it's not all City money but rather, particularly in recently years, the influx of Middle Eastern money that's turned it into a Lambourghini 'pavement showroom'

Picture of Harrods in KnightsbridgeAnother prime central area which attracts the international elite and top ranking city executives.

Charlie Bubear, Savills Knightsbridge, tell us they’ve “seen double the number of applicants registering from financial services compared to late 2009, with such buyers accounting for around 30% of our new registrations. 

“Unlike 06/07, when most of the bonus buyers were investors or people looking for flashy pieds-a-terre, we’re now seeing needs-based buying, particularly young families buying larger flats as their primary residence.  We are sensing more confidence amongst domestic buyers employed in finance. 

“In terms of gearing, bankers are looking to buy with 30% to 40% deposits and borrowing the rest, suggesting a good degree of confidence about future earnings.  Budgets are between £1m - £2.5m.”

What about the prices?
Primelocation Index says: down 10% over the past year.