Real estate in London for investment purposes, liquid housing in the capital, formation of the market price, the size of dividends on investments – thorough understanding of these aspects is absolutely essential for the acquisition of truly competitive housing in the capital of England.
The prospects of acquiring real estate in London and general market trends
In 2014, real estate in London is the most attractive target for many international investors. To date, housing prices in the center have reached record levels, so £60,000 price per square meter of living space is now a reality. The local prices are even higher than in Hong Kong or New York, which was considered to be the most expensive during the periods of stagnation.
Diversification of investment with minimal risk in real estate in London
Such a stable price growth is a measure of the ability of capital to diversify. Thus, by investing in residential facility in the capital will almost certainly guarantee recoupment within a few years: its value will rise and it will be possible to carry out operations with resale to drive dividends.
Real estate in London has always been distinguished by the high cost, even in the period from 2009 – 2012’s; when the crisis has hit the global real estate market, real estate in the capital of England didn’t lose their price positions, and moreover, it has steadily started moving forward. Thus, the luxury property in the center is offered at a price higher than in the regions by about 5 times. Properties in regional cities in the UK exceeded the the cost of residential facilities in other countries by at least 2 times. All this has ensured the influx of buyers in the market and steady growth of new investors in the country. Just in the last few years, the market attracted more than 110,000 new customers.
By acquiring property in London, investors can at least count on positive recoupment prospects in the nearest future. According to the consulting agency Knight Frank, from 2015 to 2016 there was a sharp price surge in the residential sector. Indicative price growth has reached 4.3% mark compared to this year. In general, if we consider the medium-term increase of the price indices, by 2018 the cost will increase by 35.8%. Analysts themselves, making preliminary forecasts in 2013, expected to observe 27% price growth. Solicitors.guru, a platform that allows you to find a solicitor, predicts that conveyance solicitors services will remain at the same mark, although it is counted in percentage (up to 3%).
Investors themselves have high expectations on recoupment by real estate in London and lay investors themselves, which is evidenced by a recent study conducted by Zoopla. The aim of study was to examine what investors expect from the purchase of housing in the capital. Approximately 92% of respondents stated that they expect a rise in prices in the first quarter of next year, which is 65% more as compared with the first quarter of this year. Only 3% of respondents believe that real estate will fall in price. According to the same research, but carried out in 2012, the respondents did not have such confidence in the market, and about 19% of potential buyers have stated about the possible price falls.
From this standpoint, property in London has a very ‘high credibility’ on the part of investors from abroad. And it is confirmed by the number of transactions – about 65% of all the transactions for the purchase of residential buildings of the capital is carried out by foreigners. These people were mainly natives of Asia and the Middle East; high activity of buyers from the CIS was also observed. The latest category is primarily interested in the elite sector, so it is admitted that every 15th house acquired at a price of £10,000,000 was associated with Russian-speaking investors.