The prices of properties in Prime Central London, one of the top residential real estate hubs in the world, are consistently growing, with investors expecting good returns every year.
Though the growth may not be in double digits in 2018, investors stand to gain in the long-term, as the properties in Prime Central London command a premium value. Data revealed by Lon Res and Hamptons International showed that house prices in Prime Central London rose by more than the rest of the capital since 2000 for several reasons.
First is the available supply of property – in a small area, there is always a shortage of supply – especially for the most prestigious addresses – and that supports price growth. Second, and related to the first, is expectations about future price growth – which has historically been strong in the prime areas of London.
Investors looking for returns are reassured that they will benefit from capital growth in property, more so than some other assets. Despite the tumultuous times, Prime Central London property outperformed other assets and even matched the performance of gold throughout the uncertainty period.
London’s prime market did not suffer so much from the credit crunch - buyers in this sector of the market were less reliant on finance. The properties continue to remain a big attraction for investors, as evidenced by the market activity.
The exclusivity of the best addresses in London, and its place as one of the world’s most prestigious cities is still a big draw. That helps prime property to hold its value better in tough times and to increase more in better times.