Prices for luxury property in London fell slightly

Prices for rental residential real estate of London in the centre of Kyiv continued its downtrend in August, down 0.2 per cent which means that for this year, rental prices fell by 1%. These data led the Agency – Knight Frank – chief specialist of luxury real estate.

However, despite a slight decline in rents, activity levels, of buyers in the luxury real estate market in London continues to remain high. The number of views of new apartments class “Luxury” for sale, increased by 11.9% compared to the same period in 2012. In addition, the number of new applicants increased by 9 %.

The rental market of real estate is closely linked with the business and financial areas of Europe. And as the Eurozone economy continues to show uncertainty, these figures are reflected in the prices of luxury real estate.

For example, the rental market in the price range up to £1500 pounds a week, which was the traditional demand for highly paid employees of the city, fell 1.3 % during the year, and today is 3% lower than they were a year ago. The sector of the market even more expensive property in excess of £1,500 pounds in a week, fell by only 0.9% in the year, and today it is 2.6% lower than a year ago.

The data coming from the labor market, indicate that for three months of 2013 through July, was to increase the availability of work, but the wage level remains at a lower level than in 2012.

However, confidence among the employees of the business center in London remains high, expanding tech, media and telecommunications sector. An additional source of good news was the news that investment banks including Nomura, Citigroupи Bank of America began hiring business markers and traders from Europe.

The August fall in rents followed the July. The annual decrease in rates of rent in the capital at the best postal codes was 2.7%.

A more expensive sector of the market more resilient to price drop. Over the past month fall in rental prices has affected more homes than apartments – 0, 6% and 0.3%, respectively.

Vary in areas of London. Rents in Mayfair decreased by 4.2% from January , In St Johns wood and Notting hill – 3% and 2.1%, respectively.

In the areas of Marylebone, Kensington and Belgravia rents increased slightly, rising by 1.7%, 1.6% and 0.1%, respectively.

According to forecasts, rising rents in Elite areas of London should be expected before 2014, if there will be a substantial improvement in the employment situation in the sector of highly paid employees of financial and high-tech sectors.

® Helen Antre 28.08.2013