Real estate prices: this British city that has been beating records since 2008
And no, it is not in London that housing prices have risen the most in the United Kingdom. At least since the 2008 real estate crisis.
It’s not only in London that real estate prices are breaking the limits. Cambridge, a city located in the northeast of the British capital where, in addition to the prestigious university, there is an exceptional quality of life, beautiful old buildings and cutting-edge start-ups, also enjoys a strong appeal that has not wavered for years.
Between 2014 and 2015 alone, prices increased by 10.7% according to The Telegraph, for an average of £388,400 (about €555,000) per home, citing the Hometrack.uk price index. A lower growth rate than London (+12%), which far dominates the picture (448,200 pounds per dwelling), or the other major British university city, Oxford (+12.8%, 378,800 pounds).
Prices up 44.7% since 2008
Nevertheless, Cambridge is the one that shows the strongest growth since the 2008 real estate crisis: +44.7%, reports the British daily. That’s 0.3 points more than London. Even if we earn less than in the British capital (37,900 euros per year vs. 46,650 euros on average), “Cambridge has gradually acquired the reputation of being the least affordable city to buy a house”, the daily explains.
On the other hand, it is Liverpool which shows the strongest decline since the 2007 peak. With housing at less than 110,000 pounds on average, the coastal city in the northwestern part of the island has seen a 13.3% decline in the last 8 years. But the return to growth is slowly taking hold. So it is not quite crazy to invest in it, says The Telegraph, just like in Glasgow or Manchester, so many other markets are beginning to recover from the recession.
In Paris, house prices rose more than in London and New York
While property prices in the French capital have not caught up with those in New York or the British capital, they have increased by a factor of 3.9 in 19 years, compared with 3.6 in London and 2.1 in New York.
The population, city surface area and urban density are very different, but Paris, London and New York share a series of common points that make it useful to compare the real estate markets of these three international metropolises. The notaries of Greater Paris addressed this question in their latest business review. They found that Paris, the smallest of the three cities (2.2 million inhabitants compared to 8.6 million in New York and 8.8 million in London) remains the cheapest of the trio. The average transaction in the French capital is estimated at 513,000 euros compared to 530,000 euros in the United Kingdom and 590,000 euros for the Big Apple.
However, the study notes that behind these rather similar figures there are significant disparities. Due to its small size, Paris offers much more consistent prices than London and New York. From the least sought-after district to the most upscale, prices range from simple (240,000 euros for accommodation in the Chapel, in the 18th arrondissement) to quadruple (1 million and more on the military school side in the 7th arrondissement) while the scale goes from 1 to 10 in the other two cities. In New York, €271,000 is enough to buy accommodation in Port Ivory (Staten Island) when it takes 2.6 million to buy accommodation in Tribeca. The same difference in London between the 340,000 euros to be paid in Abbey, in the Barking and Dagenham district against 3.28 million for the highly sought-after Knightsbridge and Belgravia.
In New York, prices follow the evolution of the national market
Above and beyond absolute prices, it is mainly noted that Paris has seen the highest price increase since 1999 : they have increased by a factor of 3.9 compared with 3.6 in London and 2.1 in New York. Until 2005, the three metropolitan areas experienced very similar price trends before diverging. New York was permanently affected by the subprime crisis when Paris only felt the effects for 3 years. London, for its part, recorded a steady rise in house prices from 2008 to 2015, before the slowdown. In addition, it can be seen that the evolution of the New York market is perfectly in line with the rest of the country where London and even more Paris are totally disconnected.