Categorized | International

Prime London Real Estate Unaffected by Dismal Market

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While the majority of London’s real estate market remains in a dismal state, high-end properties have seemingly established themselves as the exception. London’s premiere residential properties have broken away from the depressed housing market, and are actually returning to prices near or above what they were prior to the global recession.

The success that these high-end properties have had can very much be attributed to two major events. These events are the Olympic games, and the queen’s diamond-jubilee celebrations. Both of these events will take place in the next year, and are expected to bring millions upon millions of tourists to the city. The prime residential areas have been identified by some of the wealthiest investors as stable locations for their money.

Although residential properties have seen reductions in their asking price, and the overall supply of homes has increased, high-end properties have actually increased in value, and are expected to continue to grow. London is not the only city that has experienced such an anomaly. New York City has also seen a rise in high-end properties despite dismal real estate conditions in the city overall.

High-end residential properties are not the only segment of the real estate market to see increased demand. Commercial real estate, particularly office space, in the city, has grown in demand to the point that there’s actually a shortage of adequate space.

Office rental prices have actually increased substantially, move well past the rate of inflation. That trend is expected to continue into the next year, particularly with the Olympics on their way in 2012.

 

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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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