London real estate a safe haven during economic turbulence

by Property Management Software on October 16, 2011

London Real Estate

London Real Estate

Houses in Fulham selling in days? Prices rising? Families chasing each other to buy? Internationals snapping up houses in Chelsea without even seeing them? What on earth is happening in the London market? The summer months, usually so quiet, were busier than anyone could have imagined.

Against the backdrop of global uncertainty and recession, says Yolande Barnes, head of research at Savills, fast sales seem almost inexplicable. But she has teased apart the dynamics and seen that it is equity, not borrowing, that is forcing the pace. The “champagne tower effect”, as she calls it, is seeping through to areas like Fulham, Chiswick and Clapham, and creating “wealth corridors” through the Home Counties to Esher, Weybridge and Guildford.

What is behind it? A rush of capital has been coming in from abroad as international buyers store their riches during turbulent economic times. London, says Yolande, is “awash with equity”. It arrives at a rate of around £3.7 billion a year, heading for high-value houses and luxury flats.

 

What is driving the interest in this high energy city? CLICK HERE

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