Facebook & Google Cause House Price Rises London & California?

Living near the headquarters of Google and Facebook is great for real estate prices and London could well be in for the same “Silicon Valley effect” on its house prices.

Living in the vicinity of the area dubbed Silicon Valley in California has meant that real estate prices increasing above the national average. The surrounding area of Silicon Valley which is situated in the southern part of the San Francisco Bay Area in Northern California is now home to numerous internet millionaires.

The area has seen real estate prices leap by on average price 20% for family home. Realtors from the area link this directly linked to the expansion of companies such as Google. The mini boom seems set to continue with rumors of Facebook floatation which is expected to set its valuation at $100bn. The property boom in the Bay area is in stark contrast to the rest of the US, where prices are falling sending valuations to an eight-year low point.

Overseas Property portal Homesgofast.com director Nick Marr parallels the trend to London’s new TechCity” It’s clear that when a large employer such as Facebook and Google enter an area it brings with it well paid employees. The surrounding areas of London’s new TechCity in Shoreditch East London could well be set for a boost in property prices. It seems a great time to invest in property near London’s own Silicon Valley when you see how things have worked out in California.

 

Londons Tech City initiative was launched by the Prime Minister David Cameron aimed at building on the existing cluster of technology companies in East London to create a world-leading technology centre.

Lord Green, Minister of State for Trade and Investment “TechCity is key to Britain’s high-tech future. UKTI is committed to bringing innovative investment to East London, and to every part of the UK.”

The hub will occupy the area of East End between

Old Street

and the Queen Elizabeth Olympic Park in Stratford. Companies that are committed to investing into the area include Cisco Systems, Facebook, Google, Intel Corporation, McKinsey & Company and Vodafone.

 

Universities that have agreed to become partners for the area include Imperial College London, LoughboroughUniversity and University College London.

 

The academic partners model is copied from Silicon Valley whose University partner is the University of Stanford.

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