Published: 15/07/2022London is a thriving metropolis, 'megacity' and centre for investment and opportunity with unparalleled cultural and historical significance. There are many reasons it's best in class, so let's consider why this is.
Real Estate in London has historically outperformed share portfolios, commodities, and even gold and oil. Although the property market is subject to the same vagaries as these markets, it can increase stability in the long term. This is mainly the case in London, which continues to be popular with investors.
Safety in numbers
For many clients, the level of foreign investment in London's property market offers a diverse investment portfolio opportunity. For overseas buyers, it gives options away from local markets and spreads their risk.
For landlords, the rental yields range between 3-5%, and when combined with growth in capital values, this brings excellent returns on investments. It is also important to note that London's residential properties typically rent in just a few weeks or sometimes even a few days. We sometimes see properties marketed and under offer on the same day.
Our world-class education system
Our universities and educational institutions lead the world, so it's not surprising that overseas students look to study here. Many foreign parents buy property for their children to live in during their studies. It's a win/win as their offspring lives rent-free, any extra rooms can be let to friends to generate income, and the property is likely to increase in value. Furthermore, they have somewhere to stay when they visit. This market alone brings £20 bn worth of revenue to the UK economy.
Investment and innovation
Massive urban regeneration projects such as Nine Elms, Canary Wharf, Elephant & Castle, and the £14.8 bn investment in Crossrail (one of Europe's most significant infrastructure projects) are great examples of London's evolution. This constant reimagining and reinvention of forgotten areas give London its buzz.
New Silicon Valley
Brexit has undoubtedly caused businesses to look hard at their models, specifically those involved in international markets. The good news is global tech pioneers such as Google, Facebook, Amazon, Apple, and Snapchat have headquarters in London, attracting billions of investments to this city.
London is a fantastic place to live with its unique vibe. It's very cosmopolitan, where everyone is respected and welcomed. It attracts professionals and students worldwide, keen to enjoy its historical significance, cultural richness, and new opportunities.
If you want to discuss investing in London property, please call one of our property experts.