Although the world is going through uncertain economic and financial times, investment of property in London is a booming industry. There are several exciting prospects for investors in London and these include residential, commercial, hotels and land and development opportunities. Buying property in London is a sound investment as it is always in high demand, attracting premium rents and is ever expanding. This ensures rewarding opportunities for investors with low risks. There are many reasons why investment property in London is a sound idea.
The London property market is extremely attractive compared to international markets. London is multi-cultural, has a high quality of life and is an attractive place to live and work in. London is known for being a top financial centre, with excellent real estate opportunities with global occupiers. This ensures that global capital is channelled into the market. London is the second biggest stock market in Europe, and will have high calibre tenants or those that are willing to inject development funding. Also, lease lengths in London are longer than the rest of the UK, ensuring that physical assets can be considered as ‘bonds’, with guaranteed minimum fixed income over the term of the lease. This has created an investment market that is geared to the investor.
Transparency is another advantage in the UK property investment market. Through intense independent research, data and industry scrutiny from advisors, equity analysts and the press, the UK property market is very transparent and easy to understand. There are also many firms and surveying practices in London that have established a platform of consistent level of advice, ensuring that a monopolistic practice does not arise. UK investment also offers investors a friendly regulatory framework and tax regime to overseas investors with no barriers to ownership and transfer of funds. Other reasons why investing in London property is ideal is the devaluation of the sterling pound, which has made the price of real estate more competitive. Investing out of other riskier currencies into sterling pound is a wise move and contemporary defensive play. Also, capital growth in central London has averaged over 8% p.a. over the last 15 years, including the credit crunch downturn. This represents a doubling of value every 9 years! Gross annual rental returns are approximately 4.5%, taking into consideration rent and capital expenditure.
Investment in property in London is a sound choice for overseas investors. Cavendish Investments provides excellent services for those looking for commercial property investment in London.