Posted by Leonard Steinberg on February 10th, 2013
Just when you thought real estate prices could not go higher in New York, we hear of real estate pricing estimates in London, a city that already makes New York seem like a bargain…. now news comes that the average price of a London home will climb at least 31 percent by the end of the decade, according to a forecast by the Center for Economics and Business Research.
Price appreciation will be driven by the British capital’s ties to fast-growing emerging markets, a “high concentration” of service firms and an economy that isn’t reliant on government spending, the London-based research group said in a statement yesterday. Other cities will experience slower growth due to cuts in government spending, the company said. High rates of immigration to the capital bring a range of skills, languages and international commercial links which are forecast to fuel London’s economic and house-price growth.
London and New York share a lot in common as they are GLOBAL CITIES, the type of city that draws industry and investment from around the globe. Both cities are perfectly positioned for robust growth, unlike many smaller cities. They have their own mini-economies, semi-separated from the countries they exist in and the world’s great talent continues to be drawn to these global centers, further fueling the demand for high end real estate.