Does the economic crisis touch only upon those who live in poorer conditions? Or is it on the contrary – it is the most painful for the riches? Recently, the prices of exclusive real estate has been growing, it seemed, without a stop. Until this summer – you could see going trough World-Estate.com database. For some time the prices of expensive flats were several times higher than their real value. However, the international crisis is making corrections in these numbers.
It was London which felt the disadvantages of the crisis first. The prices of real estate in the central districts of the capital of Great Britain have been growing constantly for several years and reached the top in March, 2008. However it took only half a year and the prices of exclusive houses and flats in London have been cut in 13 percent.
Paris came next after London. September and October were worthless in real estate market – sales were dropping catastrophically. The forecasts of “downing lightly” were not proved at all in the capital of France. The crisis has mostly touched flats the worth of which was from 1M to 3 M euros – compared to 2007, sales in 2008 dropped in 24 percent. In one of the most beautiful cities of the world one could buy exclusive and very exclusive apartment in an old-style Parisian house for such a price.
It was locals who bought such flats in Paris. They spent 8500 euros per square meter in 2007, and 10000 euros – later. During the crisis prices has dropped to the previous level. Experts declare two reasons for the drop in real estate value: on one hand, buyers are not sure about their own future, on the other hand, the smarter are waiting for a bigger drop in prices.
Some sellers who have no more patience made 3000 euros per square meter discount in selling the exclusive flats. However, News.World-Estate.com observe not all sellers felt headaches because of the crisis. For instance, a few weeks ago a flat on the banks of the river Seine was sold for 51000 euros per square meter.
Most often exclusive flats are bought by Italian, Englishman, Belgians and Swiss people. A part of income is created by Americans. Russians and people from the former Soviet Union have made a hard hit on their investments to real estate. By the way, it is foreign clients who are forming real estate market by their wishes. Foreigners who pay cosmic money for an exclusive flat require servants, drivers, house keepers and other people on duty.
In a sector of even more exclusive real estate where a flat costs more than 5 M euros, no changes have been fixed as the number of buyers has always been low here. For example, a Russian has bought a flat for 66 M euros recently. Crisis has touched upon the market of exclusive villas on the banks of the Mediterranean Sea too. Average prices in Monaco, Saint-Tropez or the Blue Coast were up to 15 M euros, though the number of buyers has evidently decreased. Also, it is feared that British and Irish clients who has bought exclusive villas on credit will be required to sell them by their banks.
No comments:
Post a Comment