Why invest in London real estate?

24 September 2018

London is a mature and well-regulated market, which is constantly evolving. Its reliable economy and political stability, combined with growth prospects and good governance, provide a compelling proposition for investors. The following are just a few key reasons to invest:

• London’s global position as a financial centre and its strong economic fundamentals make it a safe place for overseas investors to allocate their capital.
• London’s fluid occupier market and longer leases reduce the risks associated with vacancies, lease expiries and break clauses. Average lease lengths for commercial property in London are ten years, particularly attractive to overseas investors who are after income.
• The central London office market contains around 205 million sq ft of office stock across four major submarkets with a diverse range of investment profiles, from long-dated assets to development opportunities with vacant possession.
• Connectivity and accessibility in London is improving with major transport and infrastructure investments. A report commissioned by the Mayor of London recently highlighted that investment in key schemes (Crossrail 2, the Bakerloo line extension, and the expansion of the Croydon tram network) could create 400,000 new jobs and boost the economy by more than £33.8bn per year.
• The London market's transparency and liquidity make it one of world’s most favourable trading environments, with entry and exit achievable for new entrants.
• The UK is committed to creating the most competitive tax regime in the G20 and offers an investor friendly regulatory framework and tax system.
• There are a number of local and foreign financial institutions providing competitive financing terms on London assets due to their stable income profiles.
• London attracts millions of tourists every year, boosting the retail and hotel segments of the market. London ranks third amongst the world’s most visited cities (and first in Europe) with 19.2 million visitors in 2017 (according to research by The World Economic Forum).