Future of London Property Market – House Prices in London – Real Estate Trends Futurist Keynote

Future of London Property Market – House Prices in London – Real Estate Trends Futurist Keynote


What’s the future of Real Estate in London?
Well, that may be an interesting question to ask. Here I am, in Istanbul, just in the outskirts of the
city here. But it’s an important question because the future real estate in London can only be answered globally. Let me
explain: If you look at the, at the prime real
estate, you’ll find that certainly for residential, that
most of those properties are being bought by people outside of London. I’ll always
remember, it wasn’t so very long ago, a lunch I
had with some at some high-flying 30 year olds in Singapore who all belonged to a leading
insurance company. And, as we went around the room, we were
talking about what people did and they, one after the other they said
‘Ooh, I was in London recently, ooh I just bought a flat in London.’ ‘Oh, where do you live in London, it’s
quite close to where I am.’ And it turned out that of these 30-35 year olds,
as I went around these 15 people around this table for
lunch, the great majority of them had either bought an an apartment already in London or were
already planning to do so. Now, it wasn’t just a social media thing
between the lot of them: they are part of a trend, a global
trend, looking at centres like London as places to buy property. Now why are
they doing that? Part of it is because they think that everyone else will do the same from
other parts of the world. But it’s most fundamental. It’s because
through all the shocks of the last 10, 12, 14 years, right
through from September 2011 through to the seismic economic
earthquake of 2009, through the Arab Spring and a whole host other
political changes and economic pressures around the world.
Investors and individuals indeed, have just been
worried anxious, nervous and thinking, ‘If there’s a
safe bolt-hole for my stuff, where would it be? And I’m
not just talking about money stuff, cash, i’m talking about possessions. I’m talking about family, children. ‘Where, where would I want to educate my
children? If if there is a city that has low crime, has a
language I understand, has a police force I trust, has a judge and a jury system that would probably give me justice if I got into real problems. Has got at democracy, has got a stable
currency, is placed the part of the world where
actually I can operate to the East and West from normal daylight.
So I can have a normal daylight, like from eight in the morning to eight at night
type thing and, and I can be in touch with both parts my
empire or my networks or relationships around the
world. A place where I feel safe to walk around at night, a place
where I can be entertained, whether it’s in the theatre, or in the bar
or a club or fed well in a restaurant. A place
where actually I will find friends of mine from
the same culture, nationality and language group. A place where, actually, there’s culture of a whole wide variety of types,
which will satisfy me, my spouse, my children and my relatives and
friends who come to visit me. Now we have seen a flood, a flight actually of capital. A flight
especially from countries where there are already controls on
the movement of capital out of this country so that this is money that’s coming out of
strange roots or, countries where people fear that there might
be controls in the future. And remember, history’s shown us just in the
last 2 or 3 years just how radically and
and rapidly such currency controls can be
introduced, almost overnight, as a result of some
particular run on banks or whatever it is. So, What’s the future of London? I would say it’s
excellent. We are seeing, for a whole range of reasons we are seeing London’s own economy is recovering
from the banking crisis. We’re seeing that what was the,
this huge centre of banking excellence revive, it’s not quite the same shape that
it was before but at the same time, London as a
creative centre is exploding, whether it’s designing
websites, or next generation mobile devices or apps. Or the things related to the film
industry or for instance CGI graphics companies. Whether it’s people in marketing or advertising or design, London has become a
hotbed for creative talent of all kinds. London has at continued to attract HQ’s of large organisations who want to have a secure
base in the European Union somewhere, and partly because of the English
language. So, there are a whole host of reasons why
London is an attractive place to be. London continues to be a magnet for migrants from around the rest of the UK
who crash-landed in this buzzy city and are contributing to the 1
million extra citizens we will see in this city over the next 10 years
or so. So London has an interesting future. It’s highly linked to what’s happening around the world. It’s true that if we saw a continued rise of the pound against other
currencies, if we saw the continuous settling of other economic and political
situations, that we could see, some of that capital
finding it’s way back out around the world. But it’s not gonna
happen overnight. And in the meantime, communities take a while to grow and they
take a while to dismantle, and if you come with your children to educate them and
things like that, you’re probably going to stay for a while, your children
quickly group with their own friends and so on. So there’s a certain amount of
international glue that’s developing here which will drive the London economy
for the next 10 to 15 years.

6 thoughts on “Future of London Property Market – House Prices in London – Real Estate Trends Futurist Keynote

  1. Future house prices in London?  Short video comment on future of housing market in London, future real estate trends.

  2. For many wealthy individuals around the globe, the price of residential property is not a significant financial expenditure. However, for the overwhelming majority of people whose income only barely covers the costs of living, rising property (i.e., land) prices cause a replacement of such properties as shelter by a speculative investment. Properties are acquired by the modestly well off in the expectation (or hope) that the even wealthier will continue to acquire properties in highly desirable locations with much consideration for any increase in the price demanded.

    This process benefits a small minority while putting a huge amount of stress on sustainable economic growth. At some point the cost of land to the general population and businesses becomes too great to absorb. Households find they cannot save to meet minimum bank down payment requirements or carry the monthly payments of a mortgage loan given the higher and higher loan amount needed. Businesses facing rising costs for building space see profit margins decline and must decide to relocate to a less costly location, replace workers with technology, or worse. The region or nation is then in the midst of a credit-fueled, speculation driven recessionary downturn.

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