LONDON PROPERTY INVESTMENT FUNDAMENTALS

Arguably a global financial capital and consistently ranked in the top three best cities in the world, London continues to attract investment across multiple real estate platforms from leading global institutions.

The extension of Permitted Development rights (allowing offices to be converted into apartments) perpetuates a demand/supply imbalance, driving up rents, with attractive yields on commercial buildings in non-prime locations (beyond Zone 1) becoming readily achievable.

Prime London is often regarded as one of the most prestigious real estate markets for wealth preservation and trophy asset status, and despite a low yield environment, the expansion of the city will see this trend continue as emerging markets identify areas around Mayfair and Knightsbridge as their destination of choice for Foreign Direct Investment.

Outer London offers excellent growth potential aided by the opening of Europe’s largest infrastructure project, Crossrail, in 2018, with higher yields and lower capital entry.

Residential investment remains strong with the Private Rented Sector (PRS) representing an excellent investment opportunity with RPI-linked increases and healthy rental market dynamics. Forward purchase opportunities and Student Accommodation portfolios are also high performers in this market.

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‘Alternative Assets’ Moving Mainstream

Care Homes, Micro Living and Purpose Built Student Accommodation are moving into the mainstream of real estate investment as yields and opportunities increase.

0
Percentage Growth in Residential Values
in 2015
0
Percent of All Fortune 500 Companies
have an office in London
0
Years for the Average Commercial Lease
and 1.4% growth in rent Q1 2016
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