The prospect of the London property 10 years

The largest real estate company Knight Frank conducted a study of the real estate market of London, on the subject of the correlation of supply and demand.

The situation with residential real estate in London is that by 2022 the city should build housing for the sum of £80 billion to real estate Company Knight Frank also reviewed plans for new developments and pipeline construction in London and came to the conclusion that if the construction will be moving at the same pace, is expected to put 227240 new residential properties in London in the next decade.

It’s a lot less than promised members of the local government and the Department of Communities. The Department promises that the number of new apartments in London will increase by 40% and reach by 2021 the number 525790. According to preliminary estimates, the population of London will reach 9 million by 2022 and each year the city will need to Commission 50,000 units of new housing.

This situation with the construction of new homes in London can not get frustrating. The residential property prices in London are rising at an incredible pace and if demand continues to exceed supply, then prices will continue to trend upwards. The major construction underway in the areas of Newham and Greenwich and these are the main areas where be completed a big building for the next decade.

For owners of houses and flats of London, the situation is very favorable, because due to increased housing needs, the housing rental market will flourish. More and more tenants of residential property in London, concluded a long-term lease agreements and the number of tenants in the capital is constantly increasing.

Of the £80 billion that must be given to the construction of new housing, around £11 billion will be spent on construction in the heart of London. And because the pace of construction in all likelihood will not be able to keep up with the growing demand for housing, prices in the next decade also will move up.

® Maxim Savitsky 22.06.2013