Despite ongoing uncertainty about the UK’s exit from the European Union, the capital’s property market continues to be a safe investment. In fact, a recent study saw London retain its title as the world’s top destination for property investment.
In 2018, a total of £16.2 billion was spent on commercial property in the city with almost half of that investment (47 per cent) coming from the Far East. It is the result of an exciting few years for the London commercial property market, which has seen the likes of Google Campus setting up in Shoreditch’s Tech City and Apple poised to open a headquarters in the new Battersea Power Station development.
While other industries have had a stormy two years, the London property market has shown itself to be resilient. After all, it is not the first time the capital has bounced back from both national and global downturns, the London property market has a history of recovering faster than other industries from setback, in part due to its fame as an international centre for business.
It is not just commercial properties that have remained strong. According to the latest house price report from Rightmove, the average asking price for a London home increased by 3.4 per cent in the first two months of the year to £614,000.
Industry analysts and economists surveyed by Reuters are also already predicting that property prices will rise by 1.5 per cent in 2020.
Property experts are putting the rises down to interest from foreign investors. A weaker pound is said to be attracting buyers to invest in London, with properties more affordable than ever and confidence in the fact that prices will rise.
Further research from Hamptons International appears to support the trend, showing that foreign investors bought 57 per cent of homes in central London locations in the second half of 2018 and 19 per cent of those were from Europe – by far the largest group.
William Beardmore-Gray, the global head of occupier services and commercial agency at Knight Frank, went as far as declaring London “Brexit proof”, citing its infrastructure institutions and security as key reasons why the capital will always make a good investment choice.
With so many exciting and ambitious developments across London, from the complete overhaul of Elephant and Castle to the advanced projects at Battersea Power Station and Albert Embankment, not to mention the dazzling plans for the South Bank, there are plenty of opportunities to invest in a property in London.
With leading experts showing optimism for the future of the city’s property market, now could be the perfect time to buy.
