Properties in prime central London continue to attract investors since the start of the global economic crisis in 2008, as the area offers investment opportunities with promising capital gains, strong fundamentals and solid yields.
“Prices in prime central London have been resilient, behaving counter-cyclical to the international economic slowdown,” said Claudine Ang of property consultancy London Prime Property Consultants.
“Investors have been seeking a safe haven for wealth preservation by buying into an inflation-beating asset class which has been a more consistent performer than the volatile stock market, or by moving away from Euro-denominated assets.”
While wealth preservation is one of the primary reasons for investing, other motivations for buying property in the city include children studying in London schools and universities, alternative living options and purchasing for family members, especially elderly parents.
“Investment in prime central London property also produces solid income, with current gross rental yields typically between four and five percent,” noted Ang. “The increased demand has been exacerbated by potentially available rental stock being taken off the market.”
She noted that investing in prime central London property is not just about wealth protection but also wealth creation, as the city is recognised as a global leader in financial services.
Ang also mentioned that as long as London maintains its stature as a politically stable and high performing market, it will be a favoured choice for wealth protection and a lifestyle choice for investors within this asset class.
“While property prices in prime central London have increased, these price increases are still lower than those experienced in other major global cities such as Hong Kong, Shanghai and Paris.”
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