LONDON business owners have been told to expect values of their premises to keep on rising for at least the next five years.
The stuttering recovery in other markets is funneling capital into London at the moment
According to new research by the auditing firm, KPMG, real estate industry remains bullish about the London property market, believing it will dominate European markets. A survey of 70 real estate experts by the firm found that 89% thought London would retain its dominance of the European markets until 2020.
“The stuttering recovery in other markets is funneling capital into London at the moment, which is driving this bullish sentiment,” said Richard White, UK head of real estate at KPMG.
“However, while the market is undoubtedly soaring, we will need to increasingly compete for this investment as economies in Europe strengthen.”
The research also revealed that the real estate industry is split over the impact Capital Gains Tax (CGT) changes might have on the market, with 40% believing the introduction of CGT for foreign investors would impact pricing in the UK’s prime housing market, while 47% argued that it would not affect prices.
