Weekly Property Round Up
This week, Harry Edwards brings us the latest news from the property world; from the increase in the European commercial property market, and the world's most expensive properties, to whether the FA Cup really has an affect of the property market.
European Office market vacancy rate drops to lowest level in 7 years
According to Savills, the average vacancy rate for the European office market was 9.37% in Q1 2015, which is the lowest recorded level since 2009. It is predicted that this will drop below 9.0% very soon. Unsurprisingly, the lowest vacancy rates were in the London's West End at 3.8% and the highest in the economically unstable capital of Greece, Athens at 18.5%; no doubt this will increase if they default.
European Commercial Property Investment Up 44%
According to Knight Frank's latest European Quarterly Report, the European commercial property investment market enjoyed a strong start to 2015, with a total of €50.1 billion (£36.1bn) transacted during Q1 2015.
Investment volumes in Q1 2015 were 44% higher than in Q1 2014, making it the strongest first quarter since 2007. Prospects for the rest of 2015 have been boosted by recent improvements in the European economic outlook and total investment volumes are set to exceed €200 billion (£144 bn) for the first time since the 2007 market peak.
The FA Cup effect: 547% property explosion in Islington
Saturday’s FA Cup Final may have been a one-sided affair (4-0 win by Arsenal), but the game has shown possible significance to the property market. Online estate agent eMoov, found that house prices around losing finalists Aston Villa’s home ground Villa Park, in Birmingham, have risen 94% since the club last reached the final in 2000, when the average UK house price stood at £85,000 compared to £157,942 now.
However, house prices in Islington near to the Emirates stadium, the home ground of this year’s winners, Arsenal, have risen by a staggering 547% since manager Arsène Wenger joined the club in 1996. The Zoopla Z-Index showed that the average UK house price in 1996 was then £60,000, whereas now a flat in the Islington area can cost £459,391 – more than double the national average for a house.
Property around the Emirates stadium has increased in value by £27,366 in the last year, whereas around Villa Park there has only been an increase of £1,844. So, not only did Arsenal thrash Aston Villa on the pitch, they have beaten them comprehensively in the housing market too.
World's most expensive properties for sale
Just in case you get lucky this week and win the Euromillions (£15m jackpot this week), you may be able to buy the 18th most expensive house in the world, conveniently situated in St.Georges Hill, Weybridge for £14m. Or perhaps that distantly related Uncle, who happens to be a billionaire tycoon, dies and leaves you his fortune you could pick up the hottest property in London, the penthouse of One Hyde Park in Knightsbridge, for an eye watering £68m.