If you’re looking to buy a penthouse in London, now is a good time.
Factors such as Brexit and a strong supply of luxury apartments have turned London into a strong market for buyers, according to the Wall Street Journal. The uncertainties surrounding Brexit have deterred many people from wanting to buy property, and the city is still dealing with a glut of luxury homes from its real estate recovery, which started around 2010.
As a result, prices have dropped by 17 percent since 2014, hitting an average of $4,985 per square foot, and foreign buyers are still snapping up properties. For comparison, between 2012 and 2014, prices rose by 36 percent, hitting $5,773 per square foot.
The strong buyers’ market has dampened enthusiasm among builders for launching new projects.
“There is no doubt that construction starts are down,” Knight Frank partner Tom Rundall told the Journal. “If we fast forward two to three years from now I suspect that options will not be as broad as they are now.” [WSJ] – Eddie Small