But in the coming five years, prime London property prices, where values already average £4 million, are expected to jump by just over a fifth, as London remains an attractive place to invest.
Uncertainty following the vote to leave the EU combined with a recent stamp duty overhaul which pushed up the costs for people buying top-end properties suggest that further price adjustments are needed to make the market more "fluid" in London, Savills UK head of residential research Lucian Cook said.
But by 2019, prices in prime central London, which includes Westminster, Knightsbridge, Kensington and Chelsea, are expected to be back on an upward march.
Prices are forecast by Savills to stabilise during 2017 and 2018 after falling in 2016 - and total price growth of 21% is predicted between 2017 and 2021 in prime central London.
The capital has seen strong investment from overseas investors in recent years. Some experts have suggested the weakened pound following the vote to leave the EU could make London even more attractive to foreign investors as the price of property appears relatively cheap.
Mr Cook said the flatter price expectations over the next couple of years should leave room for renewed growth by 2019.
He said: "We know the prime London markets have generally rebounded strongly after a period of adjustment.
"While the tax backdrop will continue to be factored into buying decisions, no other European city has the infrastructure to match London as world city and global financial centre and this should underpin a return to trend levels of growth."