London’s real estate market continues to thrive albeit a little slower than before. However, a wide section of experts still feel that London offers several investment opportunities as far as property is concerned. London could well be a market tailored for buyers in the current scenario, going by the lowered and steadily reducing home prices throughout the city. London still remains the first pick for those with deep (make that cavernous) pockets. Several buyers are also shifting to regional hotspots like Manchester and Birmingham which offer greater affordability and homes which are easier on the pocket.
There are several global clients who continue to prefer London, particularly buyers from the Middle East and North Africa. However, investors are also preferring to pick up prime real estate in other fast-growing cities which have better yields of anything between 6-7% as compared to 2-4% in London. The entry prices are lower in surrounding cities and hence the higher demand. However, London continues to be perceived by most property buyers and investors as a long-term safe bet over several years.
Buyers previously chose prime postcodes like Belgravia, Mayfair, Chelsea, Knightsbridge and Kensington along with some portions of Edgware Road. However, areas like Marylebone and Paddington are also gaining in popularity on account of their proximity to these prime locations and the differences in prices. Marylebone High Street has a rural feel that is most attractive for buyers and they are also influenced by the Crossrail with buyers having easier connectivity to Paddington and Bond Street from Heathrow Airport once this becomes fully functional. Covent Garden is also seeing an expansion of its retail and food and beverage properties.
The UAE remains a great source of investments in property as far as London is concerned. There are buyers from this region who will continue purchasing real estate in London as per experts. Reading, Slough and Basingstoke represent major opportunities for investments since the Crossrail will offer easier accessibility to London once it is completed.