London Tops The World As The Best Place To Invest

London’s property scene has boomed in recent years to deliver stellar performances for real estate investors and it’s now been given another vote of confidence as the best in the world for returns.

International real estate firm Knight Frank has produced figures which show that London’s property market has beaten the very best international property hotspots.

They say it has out-performed New York and Paris since 2009 with only Hong Kong, Beijing and Jakarta showing faster price rises.

Fresh data from property managers London Central Portfolio (LCP) show that when the city is compared with many of the world’s other major urban centres, it is not only a class leader but investment performance has been more consistent and less volatile

Property investors have realised the potential of London in recent years and have been keen to add locations to their real estate investment portfolios.

Consistent profits

Those doing so have seen consistent profits which have not only beaten the credit crunch but returned steady yields over the last 40 years.

LCP figures show that property values have risen by 9% a year since 1996 in Westminster, Kensington and Chelsea.  They also say that property prices have rocketed by 42% since the economic global financial crisis hit.

Critics say that there is another house in bubble waiting to burst and they believe that the underlying growth is simply not sustainable.

However, LCP says the critics are mistaken since they are wrong to link London’s property boom with the rest of the UK housing market.

The firm adds that London should be viewed not as the capital of the UK but more as a capital of the world and that anyone who believes there is another housing bubble growing doesn’t really understand how London’s prime property market works.

Rising prices

In its latest analysis, the firm says that the housing market in Hong Kong and Singapore has reacted dramatically when confronted with economic uncertainty which has led to prices plummeting by 50% and 77% respectively there in one year.  In London, they say, prices fell by just 11% in prime locations.

The figures also reveal that prices in London have seen great price growth in the long term, having risen 182% since 2000.  Only Hong Kong can match that rate of growth, registering price increases of 191% in the same period.

LCP is also warning that there may be issues in the future including changes to the US tax regime and increased taxation on properties in Singapore and Hong Kong as well as the UK.

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