Categorized | International

London’s Prime Real Estate Market Sees Increased Demand

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While economists had originally feared the looking European debt crisis would have an adverse effect on London’s prime residential real estate market, the opposite has been true. Demand continues to be extraordinarily high, as both domestic and international investors are vying to buy prime properties in the city.

 

The competition and increased demand is nearing all time record high levels, as inventory levels continue to fall. The inventory supply levels are down twenty-five percent. As such, the limited number of available properties has investors willing to pay as much as one hundred thousand pounds above the asking price.

 

In some cases, residential real estate properties have been sold above the asking price within hours of being listed. The increasing demand suggests that investors have more confidence in the London market than ever before, despite the initially worries of the impact of the debt crisis.

 

Economists are now labeling the current market in London a seller’s market, as there continues to be growing interest in a limited number of available properties.

 

Investors are not the only group willing to pay more to get the residential property that they desire. There have been reports of families willing to pay well above the asking price to ensure that they are able to secure a house on a particular street.

 

It has yet to be seen as to whether or not more sellers will opt to come forth in the current market. Those that are looking to sell in this market, however, are certainly doing well. The combination of limited supply and astronomical interest among buyers has created the perfect storm for London’s prime real estate market.

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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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