Luxury properties in London has become the locomotive of the economy Velikobritanii

Prices of luxury property in Central London grew by more than two times over the past 8 years, ahead of the retail index of 86%.

In sharp contrast is the change in the price of the rest of the property in the UK, where prices fell by 19.3% over the same period.

Prices for luxury properties in Central London has grown on average by 4.9% per year since 1979. The inflation rate has been left at 3.6% in greater London and throughout the UK and 2.9%

Heads the London Mayfair with rising property prices in the 139% since 2005, followed by Knightsbridge, Belgravia and Chelsea with growth of 128%. All these areas are now showing results, almost 30% above their peak values.

As a result of the analysis, it became clear that in the field of real estate is constantly there is an imbalance of supply and demand. The proposal significantly exceeds demand, respectively, there is a constant expansion of the territory of the elite areas of London. In the West the elite district stretches from Richmond in the South to Islington in the North and from Civica in the West to Canary Wharf in the East.

London is considered one of the leading cities in the world, which strive to live and invest. The economy of London is almost a third of the UK economy. London attracts capital from around the world. Global appetites of investors constrained by limited supply. And because London is still limited in size, low level of supply is pushing prices up much faster than in other sectors of residential real estate.

London itself is a tidbit for wealthy real estate buyers but many of these buyers also live and work in London. It seems that the London property market is inextricably linked with economic success. But the insufficient number of newly incoming objects of real estate most notably in London’s luxury real estate market.

If to speak about prospects of the market a simple (not luxury) residential property in London-an analysis of the situation shows that the strength of the UK property market outside of London is due to the economy of London and the flow of funds that come from the sector of real estate.

According to forecasts, over the next five years London and the South East of England will lead the economic recovery in the UK. In London in the forefront of economic growth will be the financial and insurance sectors. The most significant growth, according to forecasts, is expected in technical, information and communication sectors.

Such sectors as financial services, will also attract international investment and human capital, which, of course, affect the foreign demand for housing. It is highly likely that in this case, the traditional profile of the buyer expands, indicating an increasing demand for luxury housing outside Central London.

It is also likely that the increase in demand for luxury housing will be focused on suburban areas, where the gap with the prices of luxury properties in Central London particularly noticeable. That is, the movement of capital will follow the direction from the Central elite areas of the city to other areas outside of London. Directly in the centre of London will also experience the activity of foreign buying activity, which will be based on inhabitants, a whole day spending in the city centre.

® Helen Antre 11.09.2013 g.