London Real Estate Market
London is the largest housing market in the UK by far. Officially over 8 million people live within the city’s boundaries with many more commuting to and from the surrounding towns and country side.
It is one of the wealthiest and most expensive places in the world. Particularly in inner prestigious neighbourhoods. In fact, residential rents and prices are high throughout London, with an average London house price, double those of the rest of the UK.
The residential Market is driven by the economy, the city’s geography and history, in addition to the regulatory constrains on new supply, especially related to spatial planning. This has resulted in housing shortages reflected in higher prices and rents.
Investors seeking properties that deliver solid returns should consider Central London.
Historically Zone 1 and Zone 2 provide the best performing returns (UK House Price Index, 2018).
London investment activities increased sharply to £5.2bn in Q2 of 2018, an 85% increase on the previous quarter. Overseas investment accounted for the largest share of the total at 79%. Prime yields are high and unchanged. On a yearly basis, Central London rents were up 6.1% in Q2 2018, the strongest growth since Q2 2015 (Office of National Statistics, 2018).
Asian investors are the most active within the market with 68% of London office purchases in 2018. The Walkie-Talkie and Cheesegrater are just two of the office blocks in the City sold to Asian buyers. Wealthy parents from outside the UK bought about £2bn of property in London over the past year in order to get their children into private schools and universities within London. Many of these parents are looking at a longer-term commitment as opposed to a short-term investment.
According to the research, most of the demand is from buyers from China and Hong Kong, followed by those from Singapore, India and Russia.
The outlook for London is to remain a leading global business hub. Industries such as Technology, Media and Telecommunications (TMT) will continue to drive growth in London.
Finance is evolving and adapting to the new demands of technology.
The constantly changing world economy and rise of digital industries is pushing the demand for Central London offices. Due to these developments, London has become very attractive to investors of both, residential and commercial properties. This is driven by the competitive price tags as well as the weak pound, benefiting hugely our clients whose currencies that have rallied against the GB pound.
Such opportunities arise just once or twice in a lifetime and now is the best time to buy London Real Estate.
Our expertise lies in sourcing, acquisition, development, management and exit strategies. Our advice is derived from business expertise, technical depth, extensive research and market insight. We advise on your current investments, with a view to improve your assets value and returns.
Contact us for a full evaluation of your current and future investments.