As a city that has long been one of the hubs of global finance and has made multiple appearances on the lists of top places to live for the ultra-high-net-worth individuals, London has certainly got its advantage when it comes to attracting international investors.
With its relatively transparent legal system, security and access to top educational institutions, London has got that magnetism that has continued to attract investors in 2016.
According to The Wealth Report 2016 by Knight Frank, a commercial and residential property consultancy, London has overtaken New York for the second consecutive year in a row as the leading city for the world’s wealthy, based on where they spend their time, grow their businesses and invest in real estate.
Although London’s property market has gone through peaks and troughs over the last 18 months, it continues to appeal to domestic and international buyers alike.
Following the natural dip in housing prices after the EU Referendum and the weakening of the Sterling, the housing market in London has strengthened the value proposition for knowledgeable buyers, with a spike in enquiries from purchasers from Asian countries, including China and Singapore.
“London remains a safe haven for investment and a hub for the world’s high net worth individuals”, says Charlie Walsh, Director, Sales at Lodha UK. “Many buyers have identified that they need to act now to secure strong long-term growth”.
Advantageously located developments in prestigious districts of London continue to attract buyers from overseas who seek a great investment that can offer a home for generations to come.
Lodha UK’s Lincoln Square is one of such developments, located in London’s historic and legal quarter between Covent Garden and the financial district of the Square Mile, next to some of London’s most prestigious educational institutions, theatres, restaurants and fashion boutiques.
Areas undergoing regeneration in London have also presented a great opportunity for investors, with prices continuing on an upward trajectory. London Docklands and Canary Wharf have been rapidly gaining investors’ interest with the development of new residential properties, restaurants, bars, concert venues and retail malls.
The new high-speed rail link connecting West and East London – the Elizabeth Line – has been contributing to higher property values for homes along the route. With a scheduled 2018 opening, pricing around the Elizabeth Line, including areas like Canary Wharf, are expected to rise 7% over the next four years.
“It is a great time to buy in London, especially in areas that are undergoing change,” says Jacob Sullivan, Director of Sales & Marketing, Berkeley Homes South East London.
“House prices in areas like London Docklands continue to experience growth compared to areas such as Kensington and Chelsea, where there has been a significant decrease in prices over the last year”.