London has always been known to be one of the most expensive cities to live in and it is consistently rated each year in the top twenty most expensive cities in the world. It is home to many important industries in Europe, and is definitely the largest financial center in Europe as well. This makes the cost of living in the city extremely expensive, and real estate here is also very costly. It has recently come out in a study looking at the valuation of housing in Britain finding that homes in London are worth as much as the entire economy of Brazil.
England has seen a recent real estate boom over the last five years, that caused the cost of living to get even higher and the value of homes to increase as well. Over the last five years the country saw a $1.5 trillion dollar increase in the value of its homes. According to research done by estate agents at Savills, the combined value of all British homes are now estimated to be worth $8.7 trillion dollars.
Homes in London have increased their value the most out of all places in the United Kingdom, increasing their value 61% over the last five years. They are also estimated to be worth more that the entire annual GDP of Brazil which is $2.2 trillion. The economy of the nation was able to recover despite the recent economic crash, and a lot of that recovery can be attributed to an increase of domestic demand and cash coming from wealthy Russian and Chinese businesses and individuals.
Researchers also found most expensive boroughs in London: Westminster, Kensignton, and Chelsea, had a combined property worth of $345 billion dollars, which is more that the GDP of Denmark. While all of this is good for current property and home owners, younger generations are finding it more difficult to purchase a home or get a mortgage, due to the rising costs.
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