When it comes to property investment in London, you might be forgiven for asking the same question as everyone else, “What about Brexit”?
But rest assured, the London property market is alive and kicking. Here are some reasons why London and the South East are a great investment option.
Growth or yield
There has been a remarkable advance in the transport infrastructure such as Crossrail. This transport investment has generated more commuter hubs that offer clear growth opportunities for investors.
This dynamic landscape has also seen sustainability emerge as a key driver for certain property developers due to the city’s limited population growth, coupled with limited available land, which fuels the demand for innovative solutions.
By prioritizing information about Biodiversity Net Gain, land and property owners can align with evolving marketing trends, which has the potential to make their future projects desirable.
There is a robust and steady demand for properties which is presenting the market with rather lucrative opportunities. Competition for property is so furious, in fact, that space is at a high premium. Buildings are constantly being demolished by demolition services like those on https://www.essexcountyskips.co.uk/demolition and being rebuilt bigger and better. Many new buildings are now much taller than they used to be in an effort to maximise square footage, giving ever larger returns. And London is not short of brownfield sites, so there are plenty of areas ready for redevelopment. So, you have options, whether your goal is growth or yield.
Risk/reward ratio is good
London is a thriving city and home to many industries and businesses. Regardless of the political and economic climate, there is enough opportunity and activity in London, particularly in innovative and disruptive businesses. Jobs and talent are never going to be in shortage and therefore the demand for commercial and residential properties will maintain a certain peak regardless of speculation. With this being said, just because the demand is there doesn’t mean you should jump at the first commercial property you come across. Go through the whole process of hiring professional commercial surveyors, inspecting the building, assess the cost of maintenance, etc. before you invest.
The risk to reward ratio is quite favourable.
Property Appreciation in London
According to the Office for National Statistics, the average London home cost 115,000 twenty years ago, growing to an average of 351,000 in 2008 and around 671,412 as in 2018.
Capital appreciation is the primary force driving people to invest in London property. There is still incredible potential for London properties to grow in value in recent years.
Some recent HPI index results also show that Barking and Dagenham, Newham, Havering and Croydon are some of the most affordable places if you want to start your property portfolio in London. These are also the areas that show strong demand for property from investors and home buyers.
A vast variety of investment niches
You might first think of the residential market when thinking of London property investment, but the flourishing commercial property market also deserves a mention. There is a constant demand for office space and other more innovative forms of commercial property like co-working spaces, or specialist niches ranging from care homes to hotels.
The fact is that London is one of the most densely populated cities in the world and demand will always be higher than the supply. The idea is to select your property strategically and strike when the time is right.
Options for both short and longer-term investments
London provides investment opportunities for all types of investors. Those looking for a longer term and those searching for a short term investment. The speed of resale in the London property market is almost “blink and you miss it”.
And on the other hand, capital appreciation and the continuous development mean that if you are willing to hold your investment, you will find plenty of rewards.
London is truly international
London is a truly cosmopolitan city with its multicultural and diverse population. It welcomes people from around the world and also enables them to invest in the property market. This makes for a buoyant property market that is always busy.
Foreign interest in the London property market has remained strong for a while now. There is particular interest from Chinese and Hong Kong-based investors, in part due to the strong exchange rate against the pound and faith in the long term prospects of investing in London.
To sum it up
Be it affordability, return on investment or long-term growth that you are interested, London will always remain an attractive option for property investment.
