The real estate boom has added 1.5 trillion dollars to the value of British homes over the past five years and left London residential property worth as much as Brazil's economy. Research by estate agents Savills shows U.K. houses and apartments were worth £5.75 trillion (8.7 trillion) in 2014, an increase of almost one trillion pounds since 2009.
London's stock of homes is now worth as much as Brazil's annual GDP: $2.2 trillion.
The city's economy has rebounded strongly since the financial crash and that has been reflected in soaring house prices. They're up 61% in the last five years, and 20% last year alone, although there are signs that the pace is slowing.
The gains have been driven by a combination of stronger domestic demand and an influx of cash from wealthy Russians and Chinese buyers.
Properties in two of London's most expensive boroughs -- Westminster, and Kensington and Chelsea -- are together worth $345 billion. That's more than the GDP of Denmark, the world's 35th biggest economy.
While prices have been rising in almost every region of the country, the number of homes financed by a mortgage has fallen by 800,000 in five years. Younger workers are finding it harder to save the down payments and are renting in ever greater numbers instead.
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Its not surprising. London is booming at the moment. Unbelievably so.Jan 19th, 2015 - 07:40 am 0
Although the economy is incredibly strong, Im so so sure that the housing market will hold up. Still It makes my house worth aLOT more
I read somewhere else that California is about to take over as the world's 7th largest economy from Brazil!Jan 19th, 2015 - 07:42 am 0
As for this property worth, like all real estate, it is only worth what someone is willing to pay for it. And if rich idiots want to pay millions for it, so be it. Eventually the bubble will burst and the prices come down.
However, this must be worrying for Brazil right now, whose economy isn't doing nearly as well as their government predicted it would.
Everyone wants a piece of the greatest city on earth.Jan 19th, 2015 - 10:58 am 0