London Towers Over New York In Global Prime Property League
In a recent report it has been revealed that London’s property market towers over that of New York and every other major city in the world. The past five years have seen this capitals prices and sales soar, making it a hot spot for prime real estate. In 2009, there were only 2,147 sales of luxury houses and apartments within the £2m and £5m bracket, yet by 2014 sales within those brackets jumped to 6,250. London’s previous figures had it sitting behind Hong Kong and on par with New York, yet the increase now means that London is doubling that of New York and even tripling the numbers in cities like Hong Kong, Singapore and Sydney.
As stated by Liam Bailey, Knight Franks head of research stated that “These two cities continue to lead development trends, in terms of design, pricing and iconic architecture.” With both cities constantly competing for the prime spot, Bailey predicts that although London is dominating, and he suspects so for at least another decade, that New York could make a comeback by 2024.
So how has London taken the top spot? Research shows that the price of property in London has risen faster than any other city in the last decade. With skyscrapers bring built all over this relatively low skyline city, it’s no wonder London is seeing this boom.
But it’s not just the number of properties available that is causing this property boom, but also the rise in people renting them. Over the past few years, the city has an increase in the number of individuals relocating to the city, especially those of whom are employed in the finance and IT sector. Between 2009 and 2014, London saw the number of people employed in finance, insurance, IT and telecoms rise from 1.28 million to 1.56 million.
Yet no matter the numbers, New York is fighting back. With properties like the 432 Park Avenue sky scraper in New York, the world’s tallest residential building and with its penthouse being sold for £95m in 2013, there is sure to be an increase in its numbers.
Whilst Londoners complain of the effects this achievement has on the affordability of living for everyday residents, it’s hard not to be impressed by the fact we are living in one of the greatest cities in the world.