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Investments in London property with the eyes of the professional

Investments in real estate of London pursue the ultimate goal – getting pure dividends from the purchase of a residential facility. To date, the profits can be made on reselling real estate at the time the highest price increments, as well as providing the facility for rental. In this case, the investment will pay for itself slower, but guarantee stability for the long term.

Among international investors residential objects of the secondary market (cottages, townhouses, detached villas and apartments) have a higher priority. As a rule, they choose these investment objects for the sake of a potential yield. The greatest potential for profitability is determined by the annual growth of capital. On this basis, more than 67% of real estate investments in London enters the objects of elite sector. According to solicitors.guru (a legal hub allowing you to find a solicitors in Norfolk, Cheshire and other regions) London’s conveyance solicitors mention the following numbers: the minimum cost of such facilities in early 2015 ranges from £1,200,000. The average market prices for real estate are considered to be premium in the amount of £3,500,000 – £ 4,500,000. However, about 47% of all investors prefer to invest in more expensive objects – property at the price of £6,000,000 – £7,000,000.

This interest in the elite residential sector is triggered by the most intense price increases, which correspond to 10% – 12% of annual growth. This rise in prices makes it possible to gain pure earnings by resale real estate taking into account the difference between the initial cost for the purchase and the final amount of the item at the time of sale.

In this regard, investment in real estate in London comes to the maximum extent in the central regions of the capital. Housing stock in the central area is 90% formed of elite competitive objects. The highest concentration of real estate with a high potential yield is focused in the districts of Knightsbridge, Mayfair, Belgravia, South Kensington, Notting Hill, Westminster and Chelsea.

According to data from Dataloft experts, Mayfair is gaining particular interest at the moment. This area now has the average market price of £60,000 per square meter of living space. By 2016, experts expect a capital gain to £120,000 per square, and by 2020, the Mayfair property may become the most expensive in London at prices up to £160,000 per square meter. Talking about the most liquid real estate at the moment, we should focus on the secondary residential market of Belgravia. The average price of luxury residential properties in this area reaches £10,000,000. Investments in real estate in London, in this case may bring the profits and returning the object in rent because the tenants indicate that they are willing to rent a property in Belgravia at a price of £ 45,000 per month.

At the same elite sector is characterised by stable growth in prices, which minimises the risks of investment. Even in a period of stagnation (2009 – 2012 years), the elite real estate in the fashionable areas was sold at a price 5-7 times exceeding the average market. Now, the price gap is even more pronounced.

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Real estate use cases: understanding where your investments go

The construction market of the capital of Great Britain London offers a limited amount of business-class housing opportunities. In this article we will consider the project of residential complex in Eagle, located in the famous economic and commercial heart of the capital – the City of London on Old Street. The construction of Eagle was insured at the initial stage, so the buyers were legally protected from missed deadlines and frozen projects. Now it is a high-rise building has 26 floors offering large 1, 2 and 3-bedroom apartments and penthouses with panoramic windows on the upper floors.

Buying an apartment in high-rise Eagle is optimal for a variety of reasons. First of all – the location. The City of London is one of the most prestigious areas of London, where the average property increased in price by 10-12% annually. Secondly, the new Eagle has a perfectly landscaped infrastructure. The famous sights are in walking distance: in a 4-minute walk away LondonBridge metro station, and in 2018 the owners of the apartments in the Eagle will be able to move quickly to Paddington station and the picturesque district of Canary Wharf.

Despite the strong benefits, the cost of apartments in the new building are relatively low. Apartments with one bedroom (with an area 64 – 65m2) are exhibited at a price of £925,000. The cost of large-sized two-bedroom apartments up to 120 m2 does not exceed £1,800,000; the aforementioned numbers do not include the expenses on conveyance solicitors though, plus the investors will need to pay for the services of real estate agencies. All the apartments come with full technical equipment and decorations on board, while developers insure customers by giving guarantees on all the finishing work for up to 2 years.

The development company, which organised a large-scale project in the Battersea area, has set a new tone. Global interest in building Battersea Reach is heated and the forecasts of analysts, who believe that the new building will increase its value by 5% faster than other objects of the primary market. Battersea Reach is really a unique project, which consists of 4 high-rise apartment complexes, many of which have amazing views of the Thames.

Battersea Reach offers both luxury large two bedroom apartments and penthouses, and affordable cost apartments with 1 or 2 bedrooms. In addition, each property owner will be able to use a spacious terrace or balcony. Each of the proposed apartments is equipped with exclusive furniture, it is equipped with technical equipment, modern lighting systems, climate control and heated floors. The complex has an optimal infrastructure, since it is equipped with a gym, a business center and a restaurant.