The high-end property market is always in demand among investors, making it the ideal real estate asset to put money into in challenging economic times. This is the opinion of Peter Mindenhall, writer and researcher at IPINGlobal.com, who pointed out that the London prime residential sector in particular has made some impressive gains over the past two years.
He revealed that prices for luxury residences in the capital have increased by 31 per cent since 2009, although Mr Mindenhall stressed the need to view this in context, explaining that the volume of sales in the upper price brackets often rises during periods where "the overall market is falling and interest rates are at an all-time low". A boost to demand therefore has the knock-on effect that prices rise. "As a result, the high-end market is almost self-perpetuating, which - if you can afford it - makes it an ideal investment in the current market," he stated.
A recent report published by Christies International Real Estate revealed that 67 per cent of its affiliates and agents registered an increase in activity in the luxury property market during the first eight months of 2011, compared to the same period last year. The firm added that a lack of suitable assets is helping to push prices in London and other sought-after destinations higher.
- Wednesday 21 September 2011