New research by BNP Paribas Real Estate claims that the average price for a home in London will be just shy of £550,000 by the year 2020. They are anticipating 10.1% growth this year, 7.5% in 2016, 5.8% the following year and a further 3.7% in 2019. If this occurs it will mean that property prices will have risen by an astonishing 80% from their peak point before the global economic crisis.
In the final quarter of 2007 the average price for a home in London was £303,739. By the end of the first half of 2015, prices had risen to £429,711. This is already a 41% growth over the pre-crisis figure and shows that properties are well on their way to hitting the figure that was predicted. If the growth occurs like expected when compounded the figure would be £547,730.
If this prediction is anything to go by, there could still be all kinds of investment opportunities in the city. However, as always investors need to be careful because predictions are not a guarantee of success. The most important thing to do before buying is to look at the potential for the area and the level of demand. This will help you to determine if it is a good prospect.
London is an interesting property market because it is so broad and has great diversity. There are several prime areas, locations popular with families, havens for professionals from every imaginable industry and all kinds of other destinations. Each borough is unique and even then there will be different areas within each one with their own characteristics and appeal.
As well as considering the area, you should also be looking at the kind of properties people are looking for. The best way to make a successful investment is to find out what people want and satisfy it. For example there is no use buying a family home in an area that is far from schools and leisure facilities. It is unlikely demand for this will be high but in a different area with easy access to schooling and other amenities the property would be snapped up quickly.
If you need help deciding which properties to invest in, or need assistance handling your existing portfolio, we are the team you can rely on for help. We specialise in all aspects of property investment as well as estate, property and block management in Hackney and the rest of London, and can provide a completely professional service for you.
