Reuters reports that shrinking bonus pools in London's City financial district will reduce bankers' clout in the British capital's buoyant prime housing market this year, with hedge fund managers set to outspend them for the first time, data from Savills showed.
The property consultancy said on Wednesday that while banker bonuses were a key factor behind rocketing London house prices in 2006-7, their importance has been overtaken by overseas investors and buyers from the hedge fund and private office-populated West End district.
"Until that point, there had been a strong link between house price movements in the capital and bonus payments, but that link is now broken and the market's dependency on City bonuses is much reduced," Savills said on Wednesday.
Buyers from the West End financial district are expected to spend 1.5 billion pounds on London houses priced over 500,000 pounds this year, while City bankers are predicted to spend just over 1 billion pounds in bonus money.
Savills said it expects international investors to retain their position as London's biggest buyers of prime housing in 2012 with a predicted spend of 4 billion pounds, as many continue to favour London for its safe haven status.
6 Feb 2012
3 Feb 2012
The Global Property Investment Market Broadens, But Not Too Far
More than half the recent global investment in commercial real estate found a home in just 30 cities with a quarter spent in London, Tokyo, New York, Hong Kong and Paris, according to real estate services company Jones Lang LaSalle, reports Reuters.
In a report released on Wednesday, it said it expects major cities in emerging markets to increasingly become viable contenders for real estate investment dollars, expanding its list of 30 "alpha" cities over the decade.
By 2020, the list likely will broaden to the top 50 with investment spreading to such cities as Mexico City, Delhi, Guangzhou, Houston and Istanbul, Jones Lang LaSalle said.
Those cities were attracting global corporations, who are most often tenants, it said. Yet, as the quality of the buildings there improve and the real estate markets become more transparent, and the buying and selling becomes easier, these markets become safer for investment.
The study included investments in shopping centers, malls, office buildings, warehouse and distribution centers, and hotels. The report does not include apartment buildings.
Within 10 years, the bulk of commercial real estate investment will be in assets located in 300 cities where technology enables large global companies to operate in more cities, Jones Lang LaSalle said. Those include secondary and tertiary cities in China as well as those in more mature economies such as Austin, Texas.
Even with that expansion, traditional real estate investment markets will retain their top positions, especially those in the United States, said Jeremy Kelly, a director of global research for Jones Lang LaSalle and author of the report.
"While, the Asian/Pacific story is very compelling, and many real estate players are focusing on the growth opportunities there, we shouldn't forget the chunkiness, size and growth potential of many U.S. cities," Kelly said. "They are among the most innovative, and they are huge cities. Eleven of the top 30 in 2020 will be in the United States."
In a report released on Wednesday, it said it expects major cities in emerging markets to increasingly become viable contenders for real estate investment dollars, expanding its list of 30 "alpha" cities over the decade.
By 2020, the list likely will broaden to the top 50 with investment spreading to such cities as Mexico City, Delhi, Guangzhou, Houston and Istanbul, Jones Lang LaSalle said.
Those cities were attracting global corporations, who are most often tenants, it said. Yet, as the quality of the buildings there improve and the real estate markets become more transparent, and the buying and selling becomes easier, these markets become safer for investment.
The study included investments in shopping centers, malls, office buildings, warehouse and distribution centers, and hotels. The report does not include apartment buildings.
Within 10 years, the bulk of commercial real estate investment will be in assets located in 300 cities where technology enables large global companies to operate in more cities, Jones Lang LaSalle said. Those include secondary and tertiary cities in China as well as those in more mature economies such as Austin, Texas.
Even with that expansion, traditional real estate investment markets will retain their top positions, especially those in the United States, said Jeremy Kelly, a director of global research for Jones Lang LaSalle and author of the report.
"While, the Asian/Pacific story is very compelling, and many real estate players are focusing on the growth opportunities there, we shouldn't forget the chunkiness, size and growth potential of many U.S. cities," Kelly said. "They are among the most innovative, and they are huge cities. Eleven of the top 30 in 2020 will be in the United States."
1 Feb 2012
W2 Apartment For Rent, Kendal Street, Marble Arch
Kendal Street, Marble Arch, London, W2
We offer a beautiful one double bedroom first floor apartment within a period conversion set close to the West End. Benefits include a bright reception room, open plan fitted kitchen with some appliances, ensuite shower room with wc, available Now, unfurnished or part furnished.
Central London Property for Rent
30 Jan 2012
Central London Property Market Attracts The Cash Rich
Investment from overseas is continuing to drive the housing market in the heart of London.
This is according to Naomi Heaton, chief executive of London Central Portfolio, who believes that the financial security of homes in the capital appeals to cash-rich foreign investors more than in other European cities.
"Inevitably, foreign buyers will dominate by virtue of the fact that there are far more wealthy people globally, than there are located in the UK," she said.
"London Central is increasingly seen as a safe haven market which offers capital preservation with long-term upside potential."
And it seems the figures back up her claims.
Recent statistics released by the Royal Institution of Chartered Surveyors (RICS) show that nationally property values have seen a slight decrease. But London has continued to buck the trend.
There's also good news for landlords in London as HomeLet's Rental Index for November showed that in some parts of the capital, rental values are 80 per cent greater than the national average.
London Property Market News
This is according to Naomi Heaton, chief executive of London Central Portfolio, who believes that the financial security of homes in the capital appeals to cash-rich foreign investors more than in other European cities.
"Inevitably, foreign buyers will dominate by virtue of the fact that there are far more wealthy people globally, than there are located in the UK," she said.
"London Central is increasingly seen as a safe haven market which offers capital preservation with long-term upside potential."
And it seems the figures back up her claims.
Recent statistics released by the Royal Institution of Chartered Surveyors (RICS) show that nationally property values have seen a slight decrease. But London has continued to buck the trend.
There's also good news for landlords in London as HomeLet's Rental Index for November showed that in some parts of the capital, rental values are 80 per cent greater than the national average.
London Property Market News
10 Jan 2012
Property Millionaire Numbers Rising
This year has seen the number of property millionaires rise by 26,744.
According to online valuation service Zoopla.co.uk, luxury properties have continued to rise in value and there are now more people owning homes worth £1 million or more than ever.
The rise means that effectively 73 new property millionaires have been created each day in 2011.
In total there are now 253,118 homes valued at more than £1 million in the UK and the largest rise property millionaires came in London, where the number grew by 18 per cent over the past 12 months.
London is also where nine of the top ten millionaire districts in Britain are located. Kensington has the highest proportion with 56 per cent of all homes being worth more than £1 million.
Nick Leeming of Zoopla.co.uk said: "This data shows clearly how differently the top end of the market is performing from mainstream Britain."
The Knight Frank Prime London Sales Index showed that prime London property rose in value by 13 per cent in 2011.
London property Market News
According to online valuation service Zoopla.co.uk, luxury properties have continued to rise in value and there are now more people owning homes worth £1 million or more than ever.
The rise means that effectively 73 new property millionaires have been created each day in 2011.
In total there are now 253,118 homes valued at more than £1 million in the UK and the largest rise property millionaires came in London, where the number grew by 18 per cent over the past 12 months.
London is also where nine of the top ten millionaire districts in Britain are located. Kensington has the highest proportion with 56 per cent of all homes being worth more than £1 million.
Nick Leeming of Zoopla.co.uk said: "This data shows clearly how differently the top end of the market is performing from mainstream Britain."
The Knight Frank Prime London Sales Index showed that prime London property rose in value by 13 per cent in 2011.
London property Market News
16 Dec 2011
Kensington Flats & Houses For Sale & Rent: American Airlines Kensington Property to go on the...
Kensington Flats & Houses For Sale & Rent: American Airlines Kensington Property to go on the...: Prowling through the bankruptcy papers filed by American Airlines last month makes for an interesting read, especially when you get to the b...
9 Dec 2011
New European Treaty Financial Transactions Tax Imp...
Holland Park Flats & Houses For Sale & Rent: New European Treaty Financial Transactions Tax Imp...: Forbes Magazine Reports ; It’s true that President Sarkozy and Chancellor Merkel don’t in fact phrase it quite this way but that is indeed t...
Subscribe to:
Posts (Atom)