London luxury home prices soar amid demand

London luxury home prices soar amid demand.
Luxury home prices in London climbed at a record monthly pace in July as buyers competed for a smaller number of properties, real estate broker Knight Frank said. The average price of the most expensive houses and apartments rose by an average of 3.9 percent last month from June, according to data compiled by London-based Knight Frank. The annual increase was more than 36 percent, the highest since Margaret Thatcher came to power in 1979. 'Add into the mix rising domestic wealth and rising foreign wealth coming into the country, we can see why prices have risen strongly,' said Liam Bailey, Knight Frank head of residential research. The company forecast a gain of 25 percent for all of 2007. Investment bankers and hedge fund managers with bonuses to spend are vying with rich individuals from Asia, the Middle East and Russia for a shrinking supply of prime real estate in central London.


pc plus
updated real estate market statistics as of july 2nd