A teenage millionaire has explained, Simon Morris recently learned, why he chose the up and coming area of Croydon when he decided to invest in London property development.
Regeneration of Croydon
Croydon was once your typical East End neighbourhood. It was dated, run-down and written off as a no hoper by property developers. However, the regeneration trend that has revitalised other areas of the UK capital, such as King’s Cross, has spread to Croydon, turning it into one of the East End’s emerging property hotspots.
The London borough has attracted a significant amount of property development. This has boosted the area’s residential property market, for example, making it a lucrative investment opportunity for potential investors. In 2013 the Croydon Advertiser noted that Croydon house prices are rising faster than wages. The Trades Union Congress figures the Advertiser quoted said that house prices were 7.57 times average salaries at the time of writing, compared with 3.74 times average salaries in 1997.
Investing in Croydon
The area’s regeneration has attracted the attention of teenage millionaire Hashim Haq. He made his millions by working from home as a foreign exchange trader. London Loves Business reported that recently, he decided to invest £20 million in a Croydon two storey property development.
Haq, who also invested £500,000 into turning a disused pub into London’s biggest shisha lounge, Aroma Shisha, explained his decision. He said: “When you tell people you are investing (so much money) in Croydon they say ‘are you crazy?’
“But I think it’s the best place to be investing at the moment. We are seeing two-bedroom flats in central Croydon breaking the £500,000 price barrier, five years ago that would have been almost unheard of.” He also noted that “I want to invest not just money but knowledge into Croydon,” something that with his track record, should help ensure the project proves lucrative for investors.
Emerging London markets
In other words Haq is investing in Croydon because it has a strong property market with massive growth potential. His words illustrate that London property development, which as Simon Morris noted could be boosted by the emergency summer budget, has further growth potential yet. If developers tap into less championed areas such as Croydon, having conducted extensive research beforehand, they can take advantage of new up and coming lucrative investment opportunities.