Categorized | International

Long-Term Growth Expected for Prime Real Estate Market in London

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During the past year, London’s prime real estate market has enjoyed great success thanks largely due to the increasing interest of foreign investors. The influx of international investors has led London’s prime residential real estate market to increase by as much as sixteen percent over peak levels. The growth is slated to become even more impressive, as values will likely increase another twenty percent in the next five years.

While London’s prime real estate market has seen remarkable increases, the rest of the nation’s property markets have not. In fact, prime real estate markets outside of London have actually dropped almost seventeen percent in the past year. These markets have not received the same interest from international investors, thus contributing to their overall decline.

Regional markets are expected to recover at some point in the next five years, though as to when the recovery will take place is largely dependent on the impact of the global debt crisis.

While the prime real estate market in London has grown impressively in the past year, it is has not been due to domestic buyers. In fact, the number of domestic buyers is down for the most part. On the other hand, international investors are buying into London’s prime real estate market at record levels, driving prices up to their historically high levels.

Despite the lack of domestic interest in London’s prime real estate market, it has become a safe haven of sorts for most investors, as values continue to rise. With prices expected to continue growing in the coming months, it remains unclear as to whether or not domestic investors will once again start buying properties in the prime 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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