Currently, the average price of real estate in Great Britain stands at approximately $315,000. However, experts predict that by 2045, this figure will surge to around $471,000. If the market continues to develop at its current pace, the average cost of a London property could reach a staggering $1.04 million by the same year. It's worth noting that we're not talking about extravagant mansions here, but rather ordinary apartments in London. Just imagine the income required for a resident of the capital to afford their own housing in an even larger city in 2045. For the majority, it's safe to assume that renting will be the only viable option.
Conversely, the rate of price growth for houses and apartments will vary across different regions of the United Kingdom. For instance, in the southeast of England, housing prices are projected to rise to approximately $692,000 over the next 25 years. This means that prospective buyers interested in local real estate would need an additional $25,378 to meet the 10% deposit requirement for a mortgage loan. Currently, the average deposit amount in this region stands at $44,000.
The prices of residential apartments in the south-west and the east of the country are predicted to increase significantly, reaching approximately $200,000 and $221,000, respectively. Moreover, mansions in the West Midlands are expected to witness a price hike of nearly $131,000. In the northeastern regions of Great Britain, prices are projected to rise by $92,000.
In addition to considering these price trends, we must also take into account the long-term economic and social consequences of the coronavirus pandemic. The number of active construction sites in the UK has significantly decreased, leading to a shortage in supply and accelerating the natural price growth in the residential real estate sector.
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