The decline in prices for luxury real estate was first noted in April 2008 and has been observed for nine consecutive months. At the same time, the scale of the decline in the value of luxury housing is a record in the entire history of statistics since 1976.
As reported by Lenta.ru citing Bloomberg, this situation is primarily due to a sharp decline in demand for luxury real estate. Last year, in this market segment, Knight Frank brokers concluded 2.746 transactions - that is 49% less than in 2007.
Analysts predict that in the first half of 2009, the luxury real estate market of the UK capital will be in stagnation - it is expected that the level of demand will remain extremely low. This, in turn, will lead to a further decline in prices - by the end of the year luxury homes may fall in price by another 30%.
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