Luxury Properties In London Now Cheaper

Economy Jamie Simon
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The value of luxury properties in London fell after Britain voted to leave the European Union, and will continue to decline until the negotiations situation will be clear, according to real estate broker Savills, quoted by Bloomberg.

Housing prices will fall by 9% this year, the most since 2008, compared to 0%, as was previously estimated in October last year, according to the real estate broker.

The Brexit is surrounded by uncertainty and negotiations between the EU and the UK and could accelerate the decline that began when they were introduced with higher taxes on real estate this year. Savills, which previously estimated that the value of properties in London will increase by 21.5% by 2020, reduced the forecast to 3.2%.

‘The Brexit was a rude awakening for the luxury real estate market, which has been affected the most by the sequentially increase in property taxes,’ said Lucian Cook, the director of Savills Research.

‘It is difficult to see where the pressure will come until we have the outcome of the negotiations secession,” he added.

Prime property is referring to residential buildings placed in central London that have an average price of £4 million ($5.2 million) or higher. With this kind of cash you can buy a apartment with four rooms and three bathrooms in an exclusive neighborhood like Belgravia.

‘We now need further small adjustments to bring buyers back to the table in greater numbers and early signs from the autumn market are that committed sellers have adjusted their prices by between 5% and 10%,’ the head of U.K. residential research at Savills Lucian Cook said.