Property experts watch London market as futures indicator

The capitals property market continues to defy gravity and climb despite the various global and European financial issues. The London market both in residential and commercial sectors has seen impressive gains considering the wider economic outlook. The market has been driven by many factors but foreign investment looking for a hedge bet on inflation beating assets has opted for London property. With events like the Jubilee and the Olympics adding to the desire to own property in the capital there looks like there will be no stop to property inflation in London. Many in the property industry look to the performance of the London market both in residential and commercial sectors as an indicator of the future for the rest of the UK property market. Often referred to as the ripple effect prices will always raise first in the prime and super prime London locations before the capital values of property in the next tier of the property market see gains. Ultimately these gains then spread as buyers start to look at where else they can secure a property as they are priced out of these areas. This simple moves both businesses and home owners onto other large cities like Manchester and Nottingham then as their prices rise onto the next level down the scale. Those that would argue against a brighter future for the property sector should look at recent data showing a 44 percent year on year rise in the construction of new London office accommodation. There will be no fanfare for property price growth in the short term but there are clear signs that the first seeds of growth in the sector are starting to germinate.