Brexit has marked a new downward price trend in the London property market. Here, we give you the reasons why investing in London is a good option.
For decades, London has been the favourite place in the real estate sector to invest. Despite being a high investment, due to its high prices, it is a very safe market. The London market promises high revaluations and allows diversification of currency portfolios for foreign investors.
After the declaration of Brexit, London became the focus of economic uncertainty. This has caused a general decline in the price of real estate.
However, this fall in prices can be used by investors, who now want to acquire real estate at a low price. Then simply wait for the recovery and the return of stability to the real estate market. Undoubtedly, London is considered as an unbeatable business opportunity, allowing investors to achieve high profitability. This is due to the general lowering of prices in different areas of the city as well as the value of the pound compared to the euro.
The best moment to invest
Many experts such as Maritime Capital believe that now is the best time to see interesting, and potentially lucrative, investment options in London. Prices have been falling for the last three consecutive months, down 2.6% on the same period last year.
That is why London is considered as a market opportunity for potential investors who want to acquire unbeatable properties at a very low price. Then they must wait for the recovery of the London market, characterised by its stability and reliability. The trend of prices and recovery of the real estate market in London poses a very attractive option for trade and investment. Therefore, investing in London has become a solution for investors generating a higher return than other countries in the eurozone.
Renting, the safest financial asset for 2018
If you are looking to invest, we advise you to do it in the real estate market. 2018 started with advantageous figures, placing the real estate market in one of the most profitable investment sectors.
The social trend of opting to rent rather than buy is generating an increase in the demand for rentals. 2017 closed the year with an increase in rental prices around 6% in most cities, while in large cities, the figures are in the double digits. The population that most demands this type of housing option, are young people between 25 and 35 years old, who look at renting as a way of life since it allows them more freedom and mobility.
That is why many experts place the rental market as one of the most profitable for this year since the progression does not stop and a generous increase in demand is expected.
In addition, a rise in interest rates in Europe is not expected, so the real estate market will continue to attract investors.