The demand for property in London is high and both commercial and residential assets are now at a premium. Foreign investors are turning to London as a safe and secure investment, and home grown investors are equally attracted by large gains that can be made in the capital’s vibrant market.
Simon Morris is a property investment specialist based in London. Simon’s guide to Where to Invest in London has proved a vital resource for investors. On this dedicated page Simon will examine the following:
- Property Development in London
- London areas that are moving upward
- Insights into the London commercial property market
Property Development in London
The result of the 2015 General Election has seen confidence soar in both the commercial and residential property markets in London. Prime Central London is the most robust property market in the UK.
The threat of the mansion tax in the run up to the election put only a temporary break on residential property, but now that threat has passed the market is set to grow again.
The improved economic outlook is also helping to boost the commercial property market in the capital, buoyed by foreign investors looking for a good return and a safe haven for investments the outlook for commercial property investments is very positive.
With the market outlook looking so positive investors need to be reminded that thorough research should be done before investing, and taking advice from an experienced professional should always be encouraged.
Many new investors are attracted to gains that can be made on property investment in London, and it’s worth taking into consideration the alternatives to buying bricks and mortar stock. As demand for office space and residential assets in the capital grows investors can also reap good returns from alternative property investments such as property funds, trusts and bonds. You can learn more about these investments in the Simon Morris Guide to Property Investment in 2015.
London residential areas that are moving upward
While prime Central London property assets are at premium, other areas of the capital are set to become to the next growth areas, especially in residential property investment.
Areas to keep an eye on include Hounslow which is set to see large gains over the next five years. Greenwich too is primed for an increase in the average property price, the royal borough of Kingston upon Thames in south-west London is popular with families and the price of residential stock is expected to climb by around 20 per cent over the next five years.
Ealing, home to some handsome Victorian properties is set to see large scale growth, and residential investors should expect equally handsome returns on investments here over the longer term.
Barnet is the capital’s second largest borough, family friendly, this area is expected to see growth of over 20 per cent in the next five years.
Southwark, Wandsworth and Islington are all expected to see price rises above 20 per cent over the next five years according to leading sources.
Insights into the London commercial property market
The following figures should give a general insight in London’s commercial property market in 2015, 6.26 million square feet of floor space was leased in London during Q2 of 2015. This is the highest figure recorded since 1998.
The following major deals have recently been reported to have been completed:
- Specialist insurer Brit Insurance recently signed a 15 year lease on the 66,304 square foot Leadenhall Building on Leadenhall Street.
- Internet giants Google are building a £1bn European headquarters near to Kings Cross, in the meantime the search engine has leased 190,000 square feet at Kings Cross Central, Building S2.
- Deutsche Bank, is moving all its staff currently spread around various offices in central London into one office in Canary Wharf. The building is owned by Qatar’s sovereign wealth fund and Deutsche Bank is leasing 389,000 square feet.
- City watchdog the Financial Conduct Authority (FCA) have just closed the deal on a huge chunk of International Quarter’s new 515,000 square feet Building 5. The FCA will be taking 425,000 square feet of the building, one of the biggest deals of 2015, so far.