london construction

The prospects for construction and change of the situation in the London property market

The shortage phenomenon has a downside – many investors from abroad, without studying the market offers, fear of lack of facilities. In fact, the United Kingdom residential capital fund is ready to offer the facilities on the open market, and that to separate on the price class, and class, and geographical location – so each buyer will be able to make the investment.

The fact that real estate in London is available to purchase, indicates a recent report of Savills Company, which reveals that the price category where the cost of the square meter is exceeding £18,000 per square is significantly growing. To date, the elite real estate in the capital is sold at a price of around £60,000 per square meter, at the same time the selection of mid class housing is always there.

In addition, the municipality wants to attract investors into the market, so the real estate development in London primarily focuses on housing. To eliminate the housing deficit, attracting investors and recruitment of primary residential real estate market, the municipality has created a Building Committee, which is tasked with the complete elimination of the deficit by 2020.

In 2014, a multiplicity of construction projects has started on large areas of land. In the West, it is an area Old Oak Common, the construction of which is able to cover the demand of 2.4%. And also the site of The Docklands (East London). At the same time the construction of the primary real estate in London in these regions, as analysts predict, will lead the overall development of the infrastructure, which will affect the value of the objects. Thus, investors will get not only new proposals, but also a marketable commodity that has a high potential yield.

Speaking about the prospects of construction in the elite areas, the historical center, the most promising is the construction of luxury housing estate in Kensington. The starting price of one-bedroom apartments in the complex starts from £1,500,000, plus the legal expenses – the services of conveyance solicitors, but in the next 5-7 years the cost may double. A similar situation was characteristic of the new housing estate in Battersea, the construction of which ended in 2013. By the end of the construction of the area the price has increased by 13% on average. The not numerous construction areas in Chelsea and Mayfair have all the chances to go even beyond the two-fold increase – the elite property niche experiences a significant surge and the trend seems to be having a progressive nature.

All this testifies to the fact that the investment in the primary residential segment is also possible, and it also looks promising. Moreover, the purchase of primary residence is economically more accessible than the purchase of real estate with the aftermarket. To increase availability of real estate developers offering to pay money for the object partially, than making a deposit.