Alexandra Borovik

A study of fluctuation in top property prices in crisis and reasons to invest in top property.

If I had 20 million pounds, Would I invest it in luxury property!?

overview

1.The fluctuation in property prices - the definition of fluctuation and the consequences -real estate market after the financial crisis

2.The nature of top property -definition of top property -rich segments of property market

3.The fluctuation in top property prices - decrease in prices after the crisis in 2008

4.The reasons to invest in luxury property.5.Conclusion

Fluctuation in prices

change in prices or interest rates, either up or down. Fluctuation may refer to either slight or dramatic changes in the prices of stocks, bonds, or commodities

FLUCTUATION IN PROPERTY PRICES -instability in price level that is caused by

any external factors and affects the demand and supply of the property.

Consequences of fluctuation

Negative effects on the real estate market: -The decline in property demand -The loss of money from international

investments Negative effect on houseowners: -high interest rates and unability to pay the

debts -very hard to sell the house

The Falling property pricesduring the financial crisis

France were down - 9.9% Germany -2.2% Britain’s housing -16.2% Norway- 7.5% Poland -7% Iceland - 2.7% Finland’s market fell by 3.3%

.

In Europe

…..in Russia and Asia

Hong Kong statistics Russian statisticsA noticeable decline in 2008-2009 prices due to the financial crisis

LUXURY PROPERTY

is the real estate market niche targeted at the highest socio-economic group ofconsumers

Characteristics define luxury real estate:

location

price per square meters

Size

a prestigious neighborhood

security

Rich segments of Real Estate Market

Monaco boasts the world's highest GDP nominal per capita at $215,163 and is the most densely populated country in the world.

The Fluctuation of Top Property prices in crisisPrices in central London

fall in prices of the most expensive locations during the crisis

-Dubai - prices have fallen by 50%. -New York have come down by 20-30%; -Beverly Hills dropping by 30%.

- Answer to our question

Despite many facts showing that the level of fluctuation of top property prices is quite high and that LUXURY property doesnt mean SAFE property…

I would invest 20 mln £ in top property… Because there are some factors than are

more important for us than money and extra earnings…

Reasons to buy a luxury house

1. Health. Luxury property implies good location.

1. Aesthetics point of view. People buy their houses and enjoy their beauty.

3. Safety. My house is my fortress 4. Psychological reasons. Confidence,

Emotional satisfaction.

Conclusion The analysis showed that top

property prices are affected by crisis as easily as property prices in general.

It is a choice of each of us to invest money in top property or not,

However it is clear that good house contibutes to our

wellfare and safety of our family.

Bibliography

1. Global Property Guide, “UK house price growth weakens in Q3 2010”,2011.  [internet] 17 May. Available at <http://www.globalpropertyguide.com/Europe/United-Kingdom/Price-History> [ Accessed 10 may 2011]

  2. Global Property Guide, 2010. [graph], [internet] Available at

<http://www.globalpropertyguide.com/Europe/United-Kingdom/Price-History 

[ Accessed 10 may 2011]    3.Pollock,I., 2010,BBC news, ”Will house prices fall or rise in 2011“.

[internet] Available at <http://www.bbc.co.uk/news/mobile/business-11914386>[ Accessed 6 may 2011]

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