The super rich and super prime real estate in London seems to be immune to the effects of the credit crunch. This was clearly demonstrated by two property developers’ brothers Christian and Nicholas Candy who both just made 250 million pounds on property bought just 18 months ago.
Candy and Candy sold two hotels located in fashionable Kensington London, both hotels overlook Kensington Gardens and were sold for a cool 320 million pounds. The Kensington Palace and Kensington Park Hotels site were sold to a Middle East consortium. The brothers had barely started work on the project and had planned to transform the hotel into super prime real estate. The hotels would have housed 97 apartments with price tags of 10 million pounds each.
Sunday, March 30, 2008
Wednesday, March 26, 2008
A survey has found that London is becoming unpopular with investors due to rocketing house prices
Estate agent Knight Frank recently said house prices in the capital were rising at a rate of more than 30% annually during 2007.
The Urban Land Institute (ULI), which concentrates on the use of urban land in order to enhance the total environment, has established that London has dropped to fifteenth place with regard to investment prospects and thirteenth place in terms of development prospects.
In the past, London has been branded ‘a long-term favourite’. According to a spokesperson for the organisation, it is a measure of the sentiment of investors and developers which reflects that London, relative to other markets in Europe, has become exceptionally expensive.
The Urban Land Institute (ULI), which concentrates on the use of urban land in order to enhance the total environment, has established that London has dropped to fifteenth place with regard to investment prospects and thirteenth place in terms of development prospects.
In the past, London has been branded ‘a long-term favourite’. According to a spokesperson for the organisation, it is a measure of the sentiment of investors and developers which reflects that London, relative to other markets in Europe, has become exceptionally expensive.
Monday, March 24, 2008
Need for a real estate authors from London
Hi, its Tam Tree, hope you like the London real estate news blog.
I need real estate authors from London to help me coverage the London area.
Please send email if you like to participated in this effort. Thanks !
tamtree@gmail.com
I need real estate authors from London to help me coverage the London area.
Please send email if you like to participated in this effort. Thanks !
tamtree@gmail.com
Thursday, March 20, 2008
Bear buy fuels London real estate fears
LONDON (Reuters) - JP Morgan's (JPM.N: Quote, Profile, Research) cut-price takeover of rival Bear Stearns (BSC.N: Quote, Profile, Research) has thrown open the U.S. bank's London office requirements at a time when tenant demand in Europe's premier financial centre appears vulnerable.
"It's the question we're all asking ourselves," said one leading London property broker, on condition of anonymity.
"Do they (JP Morgan) need a bigger headquarters or a smaller one?" he said.
"It's the question we're all asking ourselves," said one leading London property broker, on condition of anonymity.
"Do they (JP Morgan) need a bigger headquarters or a smaller one?" he said.
Monday, March 17, 2008
Prime London property prices are weathering the market downturn
Savills said volumes of properties changing hands in the five million pound-plus market were down 23 percent on the year, while the value of deals has declined 11 percent, compared to a 106 percent surge in 2006.
Douglas & Gordon, one of London's largest independent estate agents, has witnessed a 35 percent drop in buyers on last year, but from an abnormally high peak in early 2007.
Despite a general consensus for a correction rather than a crash, some agents were more bearish than others.
Douglas & Gordon, one of London's largest independent estate agents, has witnessed a 35 percent drop in buyers on last year, but from an abnormally high peak in early 2007.
Despite a general consensus for a correction rather than a crash, some agents were more bearish than others.
Thursday, March 13, 2008
Prime properties ignore national slump
The average UK house price fell for the fourth straight month in February, but properties in London's hotspots continue to soar.
Research by Nationwide Building Society shows annual rate of house price growth sunk to its lowest level since November 2005, with prices falling 0.5% last month alone and 1% in the last three months.
But contrasting research from estate agents Knight Frank found prime London properties - those valued at £2 million and above - have remained largely unblemished by the tumultuous market conditions, rising 0.6% in February and 2.8% since December.
Chelsea was the top performing area, with an annual growth rate of 30%.
Research by Nationwide Building Society shows annual rate of house price growth sunk to its lowest level since November 2005, with prices falling 0.5% last month alone and 1% in the last three months.
But contrasting research from estate agents Knight Frank found prime London properties - those valued at £2 million and above - have remained largely unblemished by the tumultuous market conditions, rising 0.6% in February and 2.8% since December.
Chelsea was the top performing area, with an annual growth rate of 30%.
Tuesday, March 11, 2008
Brixton beats the property blues
Brixton, the West London industrial property developer, defied the general slump in commercial property as the value of its holdings rose 0.7 per cent to £2.45 billion.
The small increase in Brixton's estate is set against a fall on average of 8.4 per cent for the value of Britain's industrial property holdings while the £450 billion UK commercial property market lost on average 7.7 per cent of its value last year, according to figures for the Investment Property Databank.
“These results continue to differentiate Brixton's business from the general commercial property market,” Tim Wheeler, the firm’s chief executive, said. “We remain confident with our positioning at this stage in the economic cycle and the prospects for the business going forward”
The small increase in Brixton's estate is set against a fall on average of 8.4 per cent for the value of Britain's industrial property holdings while the £450 billion UK commercial property market lost on average 7.7 per cent of its value last year, according to figures for the Investment Property Databank.
“These results continue to differentiate Brixton's business from the general commercial property market,” Tim Wheeler, the firm’s chief executive, said. “We remain confident with our positioning at this stage in the economic cycle and the prospects for the business going forward”
Saturday, March 8, 2008
Pedal power brings British real estate specialists to MIPIM
Over 28,000 property executives will travel to Cannes next week for the 19th edition of MIPIM, the World's Property Market. But for 140 British real estate specialists, the trip to the Côte d'Azur will be something of a five-day Odyssey. The 140 riders, drawn from nearly 100 UK property companies, have committed themselves to cycling 1,500 kilometres between London and Cannes. Their objective is to raise €663,000 for charities. Berkeley Group Cycle To Cannes (C2C) leaves London on March 6 and rides into Cannes on March 10, the eve of MIPIM. Started in 2006, the C2C 'peleton' has mushroomed from an initial 17 riders and was fully booked weeks before MIPIM 2008.
Wednesday, March 5, 2008
London Luxury Home Prices Rise at Slower Monthly Pace
March 4 (Bloomberg) -- Luxury-home prices in London, the world's most expensive city for prime real estate, rose in February at the slowest rate in four months as the prospect of smaller bonuses at financial firms deterred some buyers.
Monday, March 3, 2008
UK real estate blues
You know sentiment in the UK property sector is bleak when Hammerson's news that its net asset value per share had dropped 5.5 per cent since June helped trigger a 6 per cent rise in the shares yesterday.
There is plenty to be worried about. UK retail rents have historically correlated closely with economic growth (which should slow) while office rents have moved in parallel with lease lengths (which are falling). It could be years before rental rates start growing again. Prime London office rents face further pressure from planned new office space that could add 13 per cent to the existing stock by 2010. Commercial property values have been sliding since June, and many retail tenants face falling profits. Lenders, once willing to finance 80 to 90 per cent of a project, now cap loans at 70 per cent. Falling asset prices could mean companies breach loan-to-value covenants.
There is plenty to be worried about. UK retail rents have historically correlated closely with economic growth (which should slow) while office rents have moved in parallel with lease lengths (which are falling). It could be years before rental rates start growing again. Prime London office rents face further pressure from planned new office space that could add 13 per cent to the existing stock by 2010. Commercial property values have been sliding since June, and many retail tenants face falling profits. Lenders, once willing to finance 80 to 90 per cent of a project, now cap loans at 70 per cent. Falling asset prices could mean companies breach loan-to-value covenants.
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