Luxury Properties for Sale in London
UK withdrawal from the EU and the risk of a no-deal may complicate the situation, even though the negotiators are still trying to get a deal in the coming three months, and a lot is still unclear.
The transition has resulted in volatility in economic situations. Therefore, London is expected to behave in a way to comprehend the mutual benefit framework and promote the interest of all the parties involved.
London is the financial capital of Europe, but now many Britain-based banks and financial institutions are moving to Frankfurt, Luxembourg, and Dublin, and many new jobs have been created in Paris, Milan, and Madrid.
Frankfurt may become the new business hub, whereas, in Germany, at least 20 new banks are opening up their offices. Moreover, it has made real estate outside Britain more attractive; especially, there are investors seeking office spaces in secondary markets in some of the top cities.
In London, some investors from Asia are grabbing undervalued opportunities with prospects to give attractive yields during the transition phase. In addition, the luxury segment in real estate is still booming in London, where new discounts are offered to attract buyers.
The examination by LonRes proposes the main markets in London are - Chelsea, Notting Hill, and Kensington. Many Middle East investors were interested in buying properties in the platinum triangle, and many new wealthy Gulf investors from Qatar, Bahrain, and Yemen are enquiring about the luxury properties.
These are some regions where the property value is above £10 million. Some of the highest discounts on properties are offered in Victoria. Westminster and Mayfair show positive property growth with a 14 per cent rate, where the sales grew by 21 per cent.
Non-Luxury Millennial Buyers
The July-Rightmove index suggests sellers are reducing asking prices to attract buyers due to greater competition in the property market in the UK. As a result, the number of the property on sale increased in July, but the buyers' number remained static. In the non-luxury segment, the sellers reduced the house's asking price to promote the sale.
The index statistics suggest London properties take about 70 days to sell and Scotland 39 days. The sale number has not much changed – as per y-o-y comparison, but the uncertainty during Brexit has led to a reduction in the number of buyers – who want to avoid risks in investment during the transition phase.
Hackney is some of the worst-performing housing markets, where the price of one- to two-bedroom houses witnessed the highest drop during this phase.
In the non-luxury section, professionally well-settled millennials, who are earning well - above average, do not consider buying a home a priority in the current market conditions. However, the job number increased in London in June 2018, job growth was positive, unemployment was down, and business confidence increased.
Overall, London shows positive trends, but the experts want to wait and see the impact till October. Some millennials find houses unaffordable; even though a major share of their income goes into rents, they are still not motivated to buy houses.
The reasons are - many millennials live with their parents, some suspect future financial crisis and do not want to make a huge investment. In addition, some find inflation led to a rise in the cost of living while increasing interest rates made properties exorbitant.
To know more about property rates and buying options in London, click Hamilton International Estates