London Luxury Real Estate Down for 1st Time in 5 Yrs.

by Jared Paul Stern (RSS feed)
Sep 1st 2008 at 6:02PM

Luxury residential real estate prices in central London, the world's most expensive city, have had their first annual decline since 2003 due to worsening economic conditions. The average price of houses and apartments in London's nine most expensive neighborhoods fell 1.6 percent in August from a year earlier, according to an index of properties valued at $2 million or more, Bloomberg reports.

While it's no secret that London prices have been dropping - my colleague Deidre Woollard reported on the trend in July - this is the first time the full scope of the decline has been assessed. Total prime residential sales in London are down an astounding 46 percent from last year; the downturn is being blamed on "pessimism in the financial services sector."

Some mega-rich moguls, such as Ukrainian billionaire Viktor Pinchuk, who paid over $150 million for a five-story London townhouse earlier this year, are doing their share to prop up the market.

Tags: Billionaires, London, Luxury real estate, LuxuryRealEstate, Viktor Pinchuk, ViktorPinchuk

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Reader Comments (Page 1 of 1)

Graffitimonkie Sep 2nd 2008 6:53PM

The downturn in housing has finally been realized by everyone else in the world and not only the US. Unfortunately for us the US relied a bit too heavily on the growth of the economy through borrowing against equity from our homes.

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