In London to be built luxury housing on £50 billion.

The construction of luxury housing in London has doubled since 2011 and in the coming years more than 20,000 units of new luxury homes in London will be commissioned in the next 10 years. The cost of new housing, which will go on sale, valued over £50 billion.

Currently, the construction of luxury housing in London is conducted in more than 150 areas that are traditionally considered a place of luxury living – this area of Central London, Mayfair, Belgravia and Knightsbridge, as well as areas, somewhat remote from the centre, but has long been recognized as the most prestigious districts-class – The South Bank, Paddington Bayswaterand, Chelseaand Liverpool and City.

The greatest increase in construction over the last 12 months was observed in the lower range of the elite sector of the London property, where prices range from £1250 to £1650 per square foot.

The potential peak construction activity is expected by 2017. But in the forecast it is necessary to consider the risks associated with planning, financing and the desire of some to sell the desired site, rather than to start building on it.

Many questions arise in connection with the discussion about the bubble in the housing market. It is obvious that the construction industry is cyclical. New developments appear due to the sale of previous construction projects. Therefore, in the case that the market formed a stagnant and home sales will lag behind the planned pace, it is very likely that the next stage of construction will have to adjust the timing. All these circumstances create a very undesirable economic climate, when it is necessary to provide for the event, the occurrence of which is to calculate is not easy. On the other hand, the mechanism of the reverse reaction of the market is a way of self-regulation of the market and can eliminate the catastrophic situation which will lead to a crisis.

Good time for the builders when they were confident in the growth of prices and market stability are behind us, now the market is entering a more difficult stage, when the softening market will affect the pace of construction.

However, the overall Outlook on the prospects of the real estate market of the London positive. Investors ‘ interest is huge, especially by Asian investors who are very satisfied with the pound that is still available is somewhat weaker Asian currencies. In addition, in connection with the unstable situation in the Eurozone, it is likely that part of the assets of the zone Euro will flow to the UK, where as a more stable economic situation and a more favorable tax climate. For example, it is known for several cases of refusal of citizenship of France in connection with a rigid tax policy, chosen by the French government.

® Helen Antre 27.11.2013

Battersea Reach

Property investment London