Diversification of investment with minimal risk in real estate

To date, the average market price of a typical property in London varies at about £550,000. The highest concentration of residential units of this class is shown in Battersea markets, Croydon, Pimlico and Bloomsbury – remoted from central areas, but standing out with the rapid pace of infrastructure development and well-being.

The minimum price the investors should take into account starts from £250,000; such objects are concentrated in the markets of Eastern and Western regions and industrial areas on the periphery. Typically, this sum allows acquiring relatively small one-bedroom apartments, studio apartments and lofts. Despite the democratic price, the demand for such facilities is extremely high, especially among students and young families. Therefore, this class of housing is capable of providing about 7% annual increase.

Luxury property in London is the most promising sector in terms of investment, because of it always different from the most intensive price growth, competitiveness and diversification of capital. In 2017, the entire property, which was sold in Prime Central London district (historical center), were sold for no less than £60,000 per square.

According to recent statements by Daily Mail, as well as of Savills, the greatest prospect for investment will have the luxury real estate in Knightsbridge, Mayfair, Chelsea, Kensington and Belgravia. In recent years, Mayfair market shows a more intense price growth compared to residential facilities market and other central areas. It is predicted that London’s property in Mayfair will be the most expensive, and if in 2017 it sold at a price of £100,000 – £120,000 per square meter, whereas in 2020 these figures may reach at least £180,000, not even counting the constantly growing costs associated with legal expenses on qualified conveyancing solicitors.

However, while the highest activity of our Russian-speaking investors observed on markets Chelsea, Kensington and Belgravia. It is in Belgravia largest number of transactions for the purchase of real estate has been realized that the price exceeded £10,000,000. Sami analysts say Ruble gradually moved to London.

The growth of transactions for the purchase of real estate in London in 2017

In 2017, another interesting study was conducted by Countrywide. According to the research of London property market, the number of transactions for the purchase of housing has greatly increased, indicating a sharp decrease in availability. Thus, in 2010 one luxury object attracted around 7.1 buyers, then in 2012 the competition has increased up to 8.5 customers. In 2014, these marks became even greater – 9.7 buyers for one residential facility.

To convince the experts, investors are attracted by the high potential profitability of real estate in London, the opportunity to have unlimited financial resources due to large mortgages with low rates, and the ability to get into the scope of the immigration program.