Real Estate Weakness in London
Here in the U.S. real estate woes have been common for a few years but lately it's not so rosy overseas either. The IHT reports that luxury-home prices in central London, the world's most expensive location for prime real estate have fallen for two months in a row. Knight Frank's analysis reveals that the average price of houses and apartments in London's nine most expensive neighborhoods fell 1.7 percent in June from a month earlier which cut the annual increase to 7.5 percent, down from a peak of 38 percent in August.
Like other markets, the peak end is doing well. In the London market homes costing more than £10 million did fall for the first time in three years on a monthly basis bit values are still 23 percent higher than a year ago. The market for the prime properties at this level is partially fueled by international buyers, especially from Russia, India and the Middle East, including billionaires like Roman Abramovich and Lakshmi Mittal.
