Luxury Property Market Unhurt by Economic Woes

The sale of homes in London worth more than £1 million has hit its highest level since before the recession, according to a report published by high end estate agents Knight Frank.

Prices for central London property are 9 per cent higher for the third quarter of this year than they were the same period in 2010, rental prices have surged even higher, 17 per cent up on last year and the volume of transactions, according to Knight Frank is ‘returning to pre crash levels’.

Knight Frank, which operates across several continents, has reported a 10 percent rise in pre tax profits and a 7 per cent rise in turnover, passing the £300 million mark, for the year ending March 2011.

The report confirms that wealthy people are the only ones spending at the moment, with little growth elsewhere in the property sector. Knight Frank’s spokesman stated that: “Ongoing economic weakness has ensured that London’s performance has not rippled out across the UK, although performance was boosted by strong country house sales volume in the Home Counties.”

Similar circumstances are abound in France, where companies are reporting increased sales of luxury properties all over the country – Agents EstateNetFrance have seen the sale of properties worth more than €2.1 million rise 3.5 per cent this year, while students in Paris are protesting at the lack of affordable accommodation in the city..

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