Top 5 Reasons To Invest In London’s Luxury Property Market
A dynamic and multicultural city, London offers an abundance of luxury possibilities, from five-star hotels and award-winning restaurants to high-end retail and prime properties.
Despite the political uncertainty around the decision to leave the European Union, the United Kingdom remains a global power and a great place to do business. London, the UK’s political, cultural and financial capital, is one of the most popular places in the world to invest in luxury property.
With favorable exchange rates, and house prices set to rise from 2019, now is the time to invest in London. Here are the top five reasons why:
London grew from distinct areas or villages, each with its own character and charms, which joined up as the city expanded. Today London’s luxury homes can be found in its most affluent neighbourhoods near the centre of the city, including Belgravia, Chelsea, Kensington, Knightsbridge and Mayfair. On its elegant and historic streets, London’s luxury homes are just a stone’s throw from the best restaurants, high-end retail and arts venues.
Properties overlooking parks or communal gardens carry a premium price tag. Fortunately, London is one of the greenest cities in Europe, including eight beautiful Royal Parks covering 5,000 acres, including the world-famous Hyde Park, St James’s Park overlooked by Buckingham Palace, and Regent’s Park.
Homes to suit Luxury Needs
London has a stunning variety of prime properties. From Victorian mansions, to ultra-modern serviced apartments, London’s luxury properties cater for all tastes and requirements.
Historic houses in London provide the grand residences for wealthy families to live and entertain. Properties retain their historic facades and original style, while the interiors are modernised to include computerised and integrated home automation, climate control, media suites, security management systems and passenger lifts.
London has adapted to the needs of its high-net-worth residents, with exclusive developments providing bespoke services and amenities more commonly associated with the best hotels.
One Hyde Park in Knightsbridge, one of the world’s most exclusive developments, is managed by the Mandarin Oriental Hotel Group. Residents are provided with in-house maid service, chauffeurs and a private spa.
“The level of service offered to wealthy individuals in London has leapt up over the last twenty years. One Hyde Park sets a high bar for excellent service, and it is what people will come to expect. Residents of this most desirable address have all their needs meet, and their homes are extremely secure and well-looked after both while they are in town, and when they are overseas.” – James Forbes, head of Strutt & Parker’s Knightsbridge and Belgravia office.
International Reputation and a Global Reach
International investors continue to buy property in London as it is seen as a safe-haven asset. The UK ranks highly in global indices for business, has a stable system of regulation and taxation, and is supported by English law, which is familiar to many as the jurisdiction of choice for international contracts and cross-border transactions.
London is a hub for financial services and a range of businesses, with leading players in technology, aerospace and pharmaceuticals headquartered in London, including some of the world’s largest companies. It also has a highly developed professional services sector, with top law firms, accountants and property consultants advising companies and individuals on inward investment into UK and on managing their assets around the world.
After years of strong growth, house prices in prime central London fell during 2017, and are now around 15% down from the 2014 peak. This fall is attributed to the uncertainty created by the decision to leave the European Union. Forecasters view this price fall as temporary, with property prices set to pick up from 2019. The weakness of the pound is favourable for international buyers, who are in a great position to capitalise on the unusual slowdown in the property market.
London estate agents are reporting an uptick in interest from both domestic and international buyers.
“Transaction levels in prime central London, across all price bands, are up on this time last year and this uptick is very welcome. Savvy buyers are choosing now to take advantage of current pricing.” – Charlie Willis, head of Strutt & Parker’s London residential division
London has the UK’s most extensive infrastructure with five airports, high speed rail links to France, and an improving public transport system. As Charlie Willis comments, “For international buyers, convenience is key. London has excellent transport links and is close to everything.”
Property prices are set to benefit from investment in infrastructure. London transport hubs are being transformed, and with slick new housing developments are springing up near King’s Cross, Paddington and Victoria, offering luxury living in easy reach of national and international travel services.