Despite the sluggish nature of the UK property market and the wider domestic economy, the residential property market in London continues to go from strength to strength on the back of a general housing shortage, booming demand from domestic and international property purchasers, a weak currency, not to mention good prospects for capital growth and high rental returns. Investment returns from residential property portfolios in the private rented sector for 2012 reached 8.9% last year, ensuring that the sector continued to outperform both inflation and commercial real estate, according to IPD's UK Annual Residential Property rolex jims watch shop Index. The residential property market in London offered the greatest returns, with central London providing total returns of 10.1% and Outer London (zones 4-6) giving returns of 8%. Inner London (zones 2-3) proved the top performing region in the UK with returns of 10.7%. Greater capital appreciation made up the higher portion of returns in central London, while values outside of London declined. Due rolex milgauss replica to the price premium for central London property, income returns of 2.3% reflected a lower yielding and more prime asset. Phil Tily, IPD's UK and Ireland managing director, commented: "There is little evidence to suggest the gap between London and the regions will close this year, as the demand factors driving London remain strong. While in London it has been possible to invest and achieve a level of capital appreciation, as you venture outside of the capital, residential has become more of an income play, increasingly reminiscent of wider commercial property performance." Central London's dominance may be reflected in below average UK property rental returns, but prospects for capital growth look extremely promising. "The London property market's resilience to the cheap imitation rolex watches wider housing downturn is good news for people owning and investing in high value residential property in London, particularly in prime central areas" said a spokesperson for Hyde Park property consultants, Napier Watt. The company report that there has been a recent surge in the number of homebuyers, including investors, buying property in Hyde Park, among other prestigious London areas. In spite of the surge in London property values, particularly in the heart of the capital, the weak UK currency, Sterling, ironically, has actually made buying property in Marylebone, Hyde fake mens rolex submariner Park, Mayfair and other parts of the British capital replica rolex watches for sale relatively cheaper for many foreign homebuyers, helping to fuel greater international demand for homes in London, according to estate agents Winkworth. Dominic Agace, CEO of Winkworth, commented: "Winkworth's central London offices have for some time been experiencing growing interest in prime London properties from international buyers. With a favourable geographic location between the U.S. and Far Eastern time zones, and a track record as a safe investment market, demand will always be high." With property market conditions unlikely to change anytime soon, many housing experts expect to see demand for homes in London rise further in the short to medium term. "Looking ahead to spring we expect both demand and supply to grow," said Richard Donnell, director of research at Hometrack. With housing supply struggling to keep a pace with a growing influx of buyers, any further hike in demand could potentially push property prices even higher, making now a particularly attractive time to acquire a home in the capital, especially for foreign buyers, due to the favourable currency exchange rolex replica rate. James Forbes talks to various Hyde Park property consultants and finds that demand among purchasers looking at buying property in Hyde Park as well as buying property in Marylebone among other desirable central London areas remains extremely high.