Categorized | International

Luxury Housing Market in London Continues to See Gains

Please Share!

London’s luxury residential real estate market posted its largest gain in over a year this past month. The numbers defy earlier expectations, as many analysts believed that the luxury market would finally level off or even experience a slight decline.

Prices for luxury homes soared by twelve and a half percent, as limited inventory led to many international buyers bidding against each other for each property. The competitive bidding served to drive up prices far more than originally anticipated. In a strange turn of events, the looming debt crisis, which has hindered the average housing market, actually played a significant role in the tremendous jump in pricing.

While last month’s average price increase certainly defied expectations, most analysts are standing by their belief that price growth will slow down or even level off in the coming months. However, with declining inventory, prices may continue to rise as long as demand among international investors continues to exist.

International buyers continue to dominate the luxury housing market, comprising of sixty-five percent of purchases. Russians have actually been one of the most prominent buyers of housing in the region. Their interest in London is expected to grow even further in the upcoming months due to a potentially unstable political climate.

With the luxury residential real estate market outpacing all others in London, property owners are taking slightly extreme measures to take advantage. Commercial properties that once housed offices in the prime areas of London are being converted to luxury apartments and homes. The conversions of offices to luxury housing will likely lead to an increased value of the converted property, and will result in a quicker and more profitable sale.

Please Share!

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.

Leave a Reply

Twitter Chat