When searching for your next investment, you can never go wrong with purchasing real estate - especially when the property is located in a globally decorated and renowned city like London. With a stable economy, thriving fintech sector and strong real estate market, there are little to no reasons good enough to deter you from an opportunity with so much potential.
Whether you are purchasing real estate to diversify your investment portfolio with a tangible asset that grows in value over time or as a buy-to-let investment, buying property in London promises high returns on a stable financial decision that you won’t soon regret.
If you are contemplating a real estate investment in London property, then this blog is for you. Here, we answer the question that’s bound to come up, “Why invest in London property?” by exploring the processes and benefits provided.
One thing you need to keep in mind when contemplating purchasing real estate is that you not only invest in the property, you’re investing in the city it’s located in too. You can’t purchase property just anywhere and expect to reap high rewards – you need to invest wisely – which is why London is your safest bet.
The UK’s capital is ranked as an Alpha ++ City – a position given by the Globalization and World Cities (GaWC) Research Network to cities that are the most integrated with the global economy and are linked to major economic states and regions. There are currently only two cities in the world that rank at Alpha ++ level, namely London and New York.
In and of itself, this prestigious ranking shows that London is a world-class city that is an economic powerhouse and attracts a wide cross-section of people from across the globe for a multitude of reasons. The top ones being:
We won’t pretend like the UK’s real estate market didn’t take a knock from the impact of travel restrictions, border closures and lockdown measures. Nor will we dismiss how the London market was negatively affected as a result of Britain leaving the European Union. And even though the market is slowly recovering, there is no guarantee that similar situations won’t arise in the future and have a negative impact.
However, these unprecedented times have not slowed the capital down for long, as London’s economy and real estate market is back on the road to recovery and is poised to make a massive comeback.
Since the beginning of 2021, both Savills and JLL have noted a renewed interest in urban locations, with these two companies, as well as Knight Frank, seeing a record number of new tenants registering in London in June for the year so far.
This comes as the world begins to adjust to the new normal and slowly opens up again, with restrictions being lifted, life returning to London and investment beginning to pick up. And with Millennials, Gen Z and Baby Boomers all opting to rent instead of buy, the rental market is set to boom.London’s future looks bright
Now that the UK is recovering from the impact of the pandemic and the politics around Brexit is stable with all parties involved striking an agreement for the foreseeable future, economists and experts in the real estate market all agree that the outlook for London is remarkably positive.
Furthermore, the capital is undertaking large-scale projects to improve connectivity and quality of life for its residents. Massive landmark regeneration projects are taking place all over London. This, of course, includes the highly anticipated Crossrail, a £15 billion infrastructure project connecting the West to the East in under an hour.
London’s future looks bright
Learn more with Magnate Assets
The information provided in this blog is just the tip of the iceberg when it comes to investing in London. If you would like to learn more on the topic, we have an in-depth guide available that details everything you need to know about buying property in the UK’s capital.
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