Buying a home in central London has always been a desirable thing to do for both Brits and wealthy foreign buyers. This combination has meant that London house prices were some of the most expensive in the world. The financial slowdown has changed this making London second place to Monaco in the house price stakes.
Central London real estate fell in 2008 by the most in more than three decades with the average value of a house or apartment in London’s nine most expensive neighborhoods falling by almost 17 percent.
Knight Frank LLP, research indicates that property values declined 2.2 percent in December, the ninth consecutive monthly drop in an index that mostly covers homes costing at least 1 million pounds ($1.5 million)
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“The market’s fortunes will be driven by economic conditions — especially those in the City,” said Liam Bailey, Knight Frank’s head of residential research, referring to London’s main financial district.
London has now slipped behind Monaco as the world’s most expensive market for prime residential real estate last year.
London-based Knight Frank compiles its monthly index from appraised values of properties in the Mayfair, St John’s Wood, Regent’s Park, Kensington, Notting Hill, Chelsea, Knightsbridge, Belgravia and the South Bank neighborhoods of London.
Source: www.bloomberg.com
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