For the past century there has been a great deal of speculation on whether the property bubble will burst in the UK, but mainly will the magic bubble burst in London. For the past several years house prices has gradually increased. Every year there would be a big “Woo Haa” over whether the market was too saturated and if the house prices were over inflated.
The concept of inflation (rising house prices) derived from the fact that people had started buying London property market at a fast pace compared to properties being built. Thus using the Supply and Demand chart; Demand would become greater than Supply creating an in equilibrium in the market, further resulting in increasing property prices (“inflated” prices) compared to the real value of the actual property. A great deal of buyers were scared of the fact that if they didn’t buy now the prices would increase threefold and by then they would not be able to enter the market.
The Rent A Home London Teams personal view on this “bubble bursting”?
Well, land is land, the Earth is the Earth. With our currently technology we have no possible way of creating more land. So land (supply) will always stay the same, but demand is another story. The more people there are, the higher the need for houses. And with the ever increasing booming population, we are doomed! Just kidding – but the only way demand is going to go is upwards, especially with the exponentially growing population. Supply, may increase with man made landfills or man made islands but it will not be able to keep up with the worlds population. In short, demand will always out weigh supply. Consequently increasing the price of property because as we know if something is in higher demand people will want it more and be more willing to pay for that “something”, in this case land!
With regards to London, in our opinion – (just to cover our backs) emphasis on in our opinion, price will not go down or “burst” – it may stabilise. Right now in the news commentators are stating that workers in the UK are unable to afford a house until they have worked for X amount of years. Yes, and we will agree with that – BUT it is London, the capital of England. So the demand is not just restricted to UK, it is world wide. Outside the UK, there are a large group of wealthy individuals who want and are willing to purchase in property in the sought after capital of England, London. The foreign investment will create a demand even when local demand is weak or decreasing.
Buy, Rent & Invest wisely!
Canary Wharf is the Financial District of London, just as Paris has “La Defence”, London has its Canary Wharf - it is admired by its large sky rise corporate buildings that tower over London’s traditional Victorian houses.
During the 1800s Canary Wharf was a hustling and bustling dock yard, a great deal of Sea Trade that use to come through from the Canary Islands. However when the Sea Trade economics died out and the boom of the Stock Markets and Technology Sectors, Canary Wharf was turned into a dire ghost town of empty run down warehouses.
In the past century or so, Canary Wharf has now become a land mark for London. Many visitors compare Canary Wharf to a mini New York, or to the likes to Kuala Lumpur in Malaysia. It is unlike most of London, where you have the small windy narrow streets with the cramped old picturesque houses. Some would define it as the “Urban Jungle” of London and of the United Kingdom.
Companies such as Citi Group, KPMG, Morgan & Stanley and many others are proud to have their UK Head Quarters based in Canary Wharf. There are currently more plans to expand and potentially double the size of the area.
It is no surprise that Canary Wharf has been a large attraction to property investors. It has the clientele required and often sought after by many, and it has the glamour of a vibrant urban city. The high rise buildings, the Thames River lit up by the moon light – what more could you ask for City Life.
There has been and still are a flock of Property Developers flooding into Canary Wharf to get a foot step into the ever popular area. So have a look around, to see what is available out there - there are many high profiled Property Developments out in Canary Wharf. One of the surprising finds is that in the heart of Canary Wharf, there are still properties available. Mainly provided by the “Discovery Docks”, they have recently completed the East Wing of Discovery Docks and the price of apartments are ranging from £350 000 to over £1 million.
For more information visit: Discovery Docks in Canary Wharf
# London is the biggest city in Britain and in Europe.
# London occupies over 620 square miles
# London has a population of 7,172,036 (2001)
# About 12 per cent of Britain’s overall population live in London
# London has the highest population density in Britain, with 4,699 people per square kilometre,
# London is the seat of central government in Britain.
# The tallest building in London is the Canary Wharf Tower.
# London was the first city in the world to have an underground railway, known as the ‘Tube’.
# Some of the most important people from countries all over the world visit the Queen at Buckingham Palace.
# There are over 100 theatres in London, including 50 in the West End. London theatre accounts for 45% of all UK theatre admissions and over 70% of box-office revenues.
Source: GLA Economics
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