London second-most valuable place to have property
Monday, 8 August 2011 3:26 PM
London is now the world’s second-most valuable place in which to buy prime residential property, according to new figures out today.
Savills’ new ‘World Class Index’ for 2010 stated that London is second only to Hong Kong, which retained its place as the global destination where property values are highest.
The value of London’s most prestigious properties has increased 32 per cent since 2005, when the last survey was conducted, and average values across the index have risen by 77 per cent since, despite the intervening financial crisis.
London was also named the most expensive rental city in the world with yields for landlords increasing 13 per cent since 2003.
However, many more countries are now competing on a global level than in previous decades. “A clear gap can be seen between what might be called the ‘old’ economies of Tokyo, London, Paris, Sydney and New York, which grew by 32% since 2005, and the ‘new’, or emerged, economies of Shanghai, Singapore, Hong Kong, Moscow and Mumbai which grew, on average, by 123% over the same period,” the index said.
“Within the ‘old world’ the more cosmopolitan cities have fared much better than those that restrict foreign purchasers.”
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