If you’re interested in establishing a comprehensive international real estate portfolio, London offers an excellent starting point. Despite the challenging economic scenario in Europe, London’s domestic property market remains a safe bet, even though recent growth rates are slightly more modest compared to previous years.
Recently, Savills, an international real estate agency, reported a 0.9 per cent growth in the prime London market during 2012’s second quarter. However, the annual price growth for the same year was at six per cent, the smallest progression since September 2009. This suggests a slight cooling in the market, but Savills experts maintain that investing in London remains a solid decision.
Lucian Cook, Savills Research Director, said, “The markets have come a long way since hitting a low three years ago, evident by the intense activity and price increase. However, substantial growth in the near future seems unlikely.”
If you’re exploring the buy-to-let sector, strong demand persists in London despite recent demographic shifts due to economic changes. The rise in high-quality rental properties, largely driven by international investors, has affected rental growth marginally. Nevertheless, in city centres, there is still a strong demand for accommodation, and various investment groups provide useful property investment information for long-term gains. With fewer corporate leases from the financial and business services sectors and high property prices, the demand from young professionals is skyrocketing. Hence, buying investment properties targeting this demographic could be a smart move. Consulting a House Buyer Bureau for advice is another good choice.
Mr Cook noted, “We’ve seen changes in tenant profiles as a direct result of changing market sentiment. There has been a significant decrease in high-value tenant numbers from the financial sector, especially in prime central and areas east of City markets like Canary Wharf and Wapping. Consequently, we’re observing new and increasingly localized market trends in the capital.”
