Categorized | International

London’s Prime Real Estate Market Finally Slows Down

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London’s prime residential real estate market has enjoyed a year of phenomenal growth thus far. However, it appears that prices and sales are finally starting to slow down. Prime real estate prices in London increased just over one percent during the third quarter.

Although the prices are continuing to rise in the market, the one percent growth is significantly less than the near fourteen percent growth it has experienced for the year. Real estate analysts do not seem to be overly worried about the slowdown in growth, however, as they cite limited supply as one of the reasons why prices aren’t moving up as much as they once were this year.

International investors continue to dominate, as they accounted for more than fifty percent of prime residential real estate purchases during the third quarter. The majority of the international buyers purchased properties for investment purposes. The majority of those buyers have no intention of actually using the property as their main residence.

While the prime markets dominated by international investors have shown strong, steady growth throughout the year, those that are dominated by domestic homebuyers have seen slightly lower levels of growth during the same time period. With that said, the prime market as a whole continues to thrive in London, particularly when compared to the average residential property market in the United Kingdom.

Analysts are hopeful that growth will continue, though they do believe that supply will continue to fall over the next year. The majority of homeowners in the prime residential markets of London have shown no indication of wanting to sell, as most are incredibly content with where they are located in the city.

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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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