As the situation on the Crimean Peninsula affects the real estate market in London

Who would have thought that, since that historic moment, when it was the collapse of Lehman Brothers and with it the protracted financial crisis collapsed the entire world, the prices of residential luxury properties in Central London increased by more than two-thirds. But, according to most financial analysts, this fact is more politics than Economics.

In March 2014, prices for luxury residential property in Central London rose by 0.8%, which allowed them to maintain the annual growth rate of prices at the level of 7.5%. But since its growth in 2009, prices have already risen by 68%. Such data in its report presented luxury real estate Agency Knight Frank.

In fairness, it should be noted that the current pace of price growth slowed somewhat. A year ago, in March, the pace of price growth was at 8.1% per annum. And two years ago to 11.3% per annum.

Nevertheless, London still has a reputation as a safe international financial capital. Especially notable in recent years was the interest in London of buyers from Russia , Ukraine and South-Eastern countries of China, Malaysia, Singapore.

Of course, a certain slowdown in price growth for elite real estate have contributed to a series of tax changes that affected, first of all, the most expensive real estate. For example, increasing to 15% stamp duty for real estate more expensive than £2 million pounds.

Are careful talk about the fact that in the upper segment of the market you can increase the size of stamp duty. However, General elections are looming on the horizon, do not allow members of the British government to take any unpopular steps that could scare off voters.

Recent events on the Crimean Peninsula underscored how the uncertainty in one or another part of the world can affect the mood of buyers in Central London. It would seem, introduced in connection with the situation in the Crimea, Western sanctions relate to a very narrow circle of people can not affect the situation of interest in real estate in London as a whole. Meanwhile, last month the number of views of real estate Russian rose 12%, which is indication of growing political tensions.

Another interesting indicator is the growth of the web browsing traffic of real estate websites from users in Ukraine grew by 112 % over the last year.

It is too early to say how this situation will affect the number of transactions.

But it is obvious that the unstable political situation has a significant impact on the real estate market of London.

® Helen Entree. 08.04.2014

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