Rental growth in London is rising at the fastest pace in 18 years. First-quarter sales grew 41% this year. As a result of this tremendous real estate sales increase, there is an eminent shortage of real estate, which leads to price explosions in this sector. Only in October 2006 the prices climbed about 2.1% which is a 12-month-increase of about 25%. Renting a six square metre apartment in Notting Hill costs about 800 Euros per month. Agents advertise with slogans like “tiny, but trendy” and say that these apart-ments would be “ideal for someone with an active social life outside”.
A property which cost £ 100,000 about 30 years ago would today cost about £ 3.473 million, which translates into a total growth rate of 3,473%.
The goal of this working paper is to figure out why there is still such a high demand for real estate in London, even it is one of the most expensive cities in the world. Further-more this working paper wants to show external aspects which drive the prices, and opportunities and threats which come along with this price boom.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Problem Definition and Objectives
- Course of the Investigation
- Influencing Factors
- London's economic history
- Economy in Europe
- Demography and Migration
- Olympia 2012
- Economic Growth in London
- Opportunities and Threats
- Investing in London's real estate
- Real Estate Bubble
- Conclusion and Outlook
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This working paper aims to investigate the reasons behind the persistent high demand for real estate in London, despite its status as one of the world's most expensive cities. It further seeks to examine external factors driving these prices and highlight the opportunities and threats associated with this real estate boom.
- Factors influencing London's real estate market
- Economic development of London and its role as a global financial center
- Demographic trends and their impact on real estate demand
- Opportunities and threats associated with the real estate boom
- The role of external factors in driving real estate prices
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: This chapter introduces the problem of rising real estate prices in London, highlighting the significant growth in rental and sales figures and the resulting shortage of available properties. It also sets out the objectives of the working paper.
- Influencing Factors: This chapter explores various factors that have influenced the London real estate market. It delves into London's economic history, the current state of the European economy, demographic trends in Great Britain and London, the impact of the 2012 Olympic Games, and the economic growth in London.
- Opportunities and Threats: This chapter examines opportunities and threats associated with investing in London's real estate market. It analyzes the potential benefits and risks involved in this sector.
Schlüsselwörter (Keywords)
The central keywords and focus topics of this paper include London's real estate market, economic development, demography, migration, Olympia 2012, economic growth, opportunities, and threats.
- Quote paper
- Benjamin Schmitt (Author), 2006, Real Estate Market UK: Development of prices in London, Munich, GRIN Verlag, https://www.grin.com/document/67863
