Hedge Fund Managers London
Hedge Fund Managers Outspend Bankers on London Homes
Perhaps it's a sign of the times, London's hedge funds managers are expected to outspend local bankers on homes in the city. This is the first time it will have happened as bankers have long been the top buyers of London's prime real estate. Now, however, with a shrinking banking sector and cuts to bonuses, bankers are no longer able to keep up with London hedge fund managers.
Shrinking bonus pools in the City of London will reduce bankers' clout in the capital's buoyant prime housing market this year, with hedge fund managers set to outspend them for the first time, data from Savills showed.
The property consultancy said on Wednesday that while banker bonuses were a key factor behind rocketing London house prices in 2006-7, their importance has been overtaken by overseas investors and buyers from the hedge fund and private office-populated West End.
"Until that point, there had been a strong link between house price movements in the capital and bonus payments, but that link is now broken and the market's dependency on City bonuses is much reduced," Savills said on Wednesday.
Buyers from the West End financial district are expected to spend 1.5 billion pounds on London houses priced over 500,000 pounds this year, while City bankers are predicted to spend just over 1 billion pounds in bonus money. Source
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