London is positioned to be a top destination for property investment and development potential for next year. This is mentioned in the recently published report called the Emerging Trends in Real Estate created by PricewaterhouseCoopers and the Urban Land Institute.
Prospects for real estate and investment opportunities in London for 2021 has seen significant improvement, says report lauding the data revealing that London has jumped two places from 2020 estimations.
Accelerating existing trends
A significant finding contained in the report is the acceleration of pre-existing trends in the capital. The Covid pandemic has certainly made an impact negatively, however, the real estate industry has come through and adapted quickly.
Investor preferences skewed towards digitalisation, in particular the use of online video correspondence. The industry leaned towards automation and technology-focused processes. The new emerging processes are now something of the norm for property hunters.
Seeking stability in uncertain times
Logistics and housing have benefited in some ways from recent events, says the trends report. Demand in these areas have been maintained and even stabilized. Investors seek stability and this is what makes London such an attractive investment prospect. The UK usually has a stronger and more resilient economy.
Many investors will look at the previous risk and return profiles of different types of property investment. This was according to Gareth Lewis, real estate director at PwC UK.
“It’s clear that, at this time of significant uncertainty investors continue to see Europe’s core cities as safer bets and there remains cautious optimism. With London jumping up two places to second in the rankings – despite the challenges faced by all major cities – many investors see the long-term value.
Gareth also commented that the current low interest rate climate is also a positive incentive for attracting more investors.
Rich buyers will help with recovery
London is certainly set to outperform the rest of the UK next year with house prices staying flat compared with a national fall (-1.5 per cent), a further report by JLL revealed.
The study states that prime, central London areas will bring more overseas investors to exclusive luxury districts such as Mayfair, Knightsbridge, Belgravia, Kensington and Chelsea.
Central London is significantly different to the rest of the UK property market, attracting high-net-worth people from around the world. This unique investment situation allows the city to perform well out of a downturn, rapidly bouncing back and becoming something of a safe haven for wealth generation.
What about the second lockdown and property?
Tom Bill, head of UK residential research at Knight Frank, recently reassured investors: “A second national lockdown in England is unlikely to impact the prime London property market as the first one did.
“The property market will remain open during the month-long lockdown and momentum generated since the market re-opened in May will drive deal activity into Q1 next year.”
Investors are encouraged to look to prime outer London areas, including Battersea, Canary Wharf, Chiswick, Clapham, Fulham, Hampstead, Richmond, Riverside, Wandsworth & Clapham, Wapping and Wimbledon.
Overall, London is considered a safe haven for investors. Next year is looking to be a bumper year for real estate within the capital. With foreign investors looking at London property investment opportunities, the recovery is not far behind with incentives such as free stamp duty still running up to March 2021.