Categorized | International

Prime Property Sales in London Slow Down

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For much of 2011, the prime residential real estate market in London experienced strong growth. Domestic and international buyers alike bought property as soon as it went up for sale, and it was considered to be one of the safest investments in the European housing market. For the first time this year, growth over the past quarter has been slightly slower than expectations.

Despite the slow down in growth, the one percent increase raised the year’s total growth to just over fourteen percent. The fourteen percent figure marks the largest growth that the prime residential real estate market in London has ever experienced. It is nearly double what it was last year, when total growth was calculated at roughly seven percent.

International buyers made up roughly fifty-five percent of buyers in London’s prime market. Many of those international buyers came from other European nations. The Middle Eastern share of buyers increase slightly in the past year as well. Surprisingly, the number of Chinese buyers in London’s prime market fell to just two percent in the past year.

Within London’s prime real estate market, the ultra-prime market, consisting of the city’s most expensive residential properties, experience unprecedented growth. Ultra-prime properties increased by nearly nineteen percent in the last year.

While property sales have slowed down in the last quarter of 2011, many analysts are not entirely worried about the state of the prime market in London. They do believe that the market is moving past a peak in growth, though there is no indication that prices will fall any time soon.

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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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