Invest in London, UK: Brexit takes down housing prices, attracting international buyers
As the Brexit looms, the financial capital of Europe is in uncertain times. Prices have dropped, yet so has Sterling. Is now a good time to invest?
As a city that has long been one of the hubs of global finance and has made multiple appearances on the lists of top places to live for the ultra-high-net-worth individuals, London has certainly got its advantage when it comes to attracting international investors. With its relatively transparent legal system, security and access to top educational institutions, London has got that magnetism that has continued to attract investors in 2016. According to The Wealth Report 2016 by Knight Frank, a commercial and residential property consultancy, London has overtaken New York for the second consecutive year in a row as the leading city for the world’s wealthy, based on where they spend their time, grow their businesses and invest in real estate.
Although London’s property market has gone through peaks and troughs over the last 18 months, it continues to appeal to domestic and international buyers alike. Following the natural dip in housing prices after the EU Referendum and the weakening of the Sterling, the housing market in London has strengthened the value proposition for knowledgeable buyers, with a spike in enquiries from purchasers from Asian countries, including China and Singapore.
“London remains a safe haven for investment and a hub for the world’s high net worth individuals”, says Charlie Walsh, Director, Sales at Lodha UK. “Many buyers have identified that they need to act now to secure strong long-term growth”.
Advantageously located developments in prestigious districts of London continue to attract buyers from overseas who seek a great investment that can offer a home for generations to come. Lodha UK’s Lincoln Square is one of such developments, located in London’s historic and legal quarter between Covent Garden and the financial district of the Square Mile, next to some of London’s most prestigious educational institutions, theatres, restaurants and fashion boutiques.
Areas undergoing regeneration in London have also presented a great opportunity for investors, with prices continuing on an upward trajectory. London Docklands and Canary Wharf have been rapidly gaining investors’ interest with the development of new residential properties, restaurants, bars, concert venues and retail malls. The new high-speed rail link connecting West and East London – the Elizabeth Line – has been contributing to higher property values for homes along the route. With a scheduled 2018 opening, pricing around the Elizabeth Line, including areas like Canary Wharf, are expected to rise 7% over the next four years.
“It is a great time to buy in London, especially in areas that are undergoing change,” says Jacob Sullivan, Director of Sales & Marketing, Berkeley Homes South East London. “House prices in areas like London Docklands continue to experience growth compared to areas such as Kensington and Chelsea, where there has been a significant decrease in prices over the last year”.
On the market
Lincoln Square, Lodha UK
With its advantageous location in London’s historic and legal quarter, next to the world renowned institutions like the London School of Economics, as well as world class theatres and restaurants, Lincoln Square is an upcoming destination that will offer state-of-the-art facilities and exquisitely designed residences in the heart of the city. The development will offer elegant, warm, contemporary residences ranging from studios to four-bed apartments and two penthouses with interiors designed by Bowler James Brindley. The residents’ amenities, curated by Patricia Urquiola, will include a private club and a library, a cinema room, private dining room for up to 36 people, as well as snooker and games rooms, while the wellness facilities will feature a 25 metre swimming pool, a spa and a high-tech gymnasium.
Price: from GBP 900,000 (approx. USD 1.19 million) available on lincolnsquare.co.uk
South Quay Plaza, Berkeley Homes
Poised to become one of London’s tallest residential towers when completed, the mixed-used South Quay Plaza will feature a stepped tower structure built at a 45-degree rotation to maximise water views and a panoramic city skyline, offering a valuable proximity to the London City Airport and the upcoming Crossrail that will connect Heathrow to Canary Wharf in less than 40 minutes. With its structure and interior designed by Foster + Partners, the residential facilities and amenities will span 1,500 square metres, with the entire 56th floor being dedicated to the residents’ club lounge, featuring an expansive outdoor dining section, bar, screening room, library and conference room. Additionally, the Health Club will offer a magnificent 20 metre infinity pool overlooking the Thames and other wellness amenities including a thermal suite with hot pool, sauna, steam room, treatment room and relaxation lounge.
Price: from GBP 695,000 (approx. USD 922,000) available on southquayplaza.london
For more information, visit Lodha Group.
Text by Olha Romaniuk
This story was first published in Palace Magazine