Categorized | International

East London Real Estate Sees Improvement Thanks to Its Financial Sector

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While the real estate market in the majority of the United Kingdom has struggled immensely throughout the global recession, East London might just be seeing the light at the end of the tunnel. Reports are indicating that investors are showing greater interest in the area, thanks in part to the occupancy level of financial services workers.

Housing prices have increased by nearly twelve percent in the area, and rents have also increased at roughly the same rate. It is believed that rental growth may, in fact, rise substantially in the next five years, to the tune of thirty nine percent. Investors have become increasingly attracted to the area due to the high demand for rentals. The high demand is largely due to improvement in the job market for the financial and business sectors, as well as a lack of new-build supply.

While residential rates have seen the biggest increases so far, many analysts believe that the success could trickle into the commercial real estate market, caused by a shortage of office space in prime locations. It is this shortage of office space that lead many to believe that business owners may look into neighboring areas of the city to house their business. Experts believe that if the neighboring areas begin to attract businesses, then residential real estate in the districts will also rise due to increased demand.

While the success of East London has not yet been replicated in other areas of the nation, the United Kingdom certainly must be hopeful that an end to the recession may soon be here.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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