1. Global Financial Capital
As one of the global financial centres, London boasts the real estate fit for global occupiers and strong covenants. While London’s exposure to business and financial services contributes to market volatility, ranking the city at the top, attracts and channels global capital.
2. London Real Estate Stock & Leases
London is the second biggest market in Europe. A stock replacement rate of approximately 2.7% per annum in the City of London creates opportunities in both new leases on the quality stock or to deploy development funds.
The institutional nature of UK real estate, and in particular of London offices, has created a market geared to the investor. Longer leases (compared to the rest of the UK) on a “triple net” basis ensure a physical asset can be as “bond like” with guaranteed minimum fixed income over the lease term. Often it is secured on product better than in other global markets.
3. No.1 on 2018 Global Real Estate Transparency Index
According to the JLL Global Real Estate Transparency Index, the UK ranks as the 1st most transparent real estate market globally in 2018.
Industry scrutiny by both the media and financial analysts as well as independent research facilitate a very transparent, and, more importantly, relatively easy to understand market.
4. Legal & Tax Advice
The law and surveying firms operating on a highly competitive London market, often offer advice at a global level.
UK regulatory tax framework has no barriers to real estate ownership and the transfer of funds in and out of the UK for overseas investors with no.
5. Currency & Familiarity Factors
The devaluation of GBP has made the price of London real estate even more attractive to overseas buyers.
Investors naturally prefer to invest in areas they know. As a globally known financial and business capital London attracts investors who already have strong links with London as well as new ones alike.
6. Educational Excellence
For high net worth investors, the desire for education excellence for their children and relatives often goes in hand with the purchase of a residential property.
This is where London real estate market intersects with the commercial sector. According to UCAS, out of 1.8 million full time undergraduate students in higher education last year, over 104,000 were international students.
7. Culture & Language
The multiculturality, the quality of life and the English language make London an attractive place to invest, live and work.
Growing international demand and the stock shortage (at approximately 100 transactions per week) continues to contribute to price growth.
Capital growth in London Central has averaged over 8% per annum over the past 15 years, including the credit crunch downturn. This means the house values double every 9 years.
Gross annual rental return oscillates at approx 4.5%, taking into account rent versus capital expenditure (i.e. purchase price and renovation costs).