Investors from Middle East countries are growing increasingly interested in London real estate due to a favorable dirham-to-pound exchange rate. They are particularly enthusiastic about inexpensive properties in the capital’s outer areas where a higher return can be achieved.
For instance, prices in Ridgeway Views in Mill Hill (a London suburb) start at 427,995 pounds. A property in the Springfield Place project in the southern part of the capital located on 32-acre public parkland can be purchased for 455,000 pounds.
Historically, investors have been mostly attracted to the central London – districts such as Chelsea, Belgravia, and Knightsbridge. Now, however, more remote locations are gaining momentum.
Another factor that investors should consider is the new Crossrail train service launched in May that connects Reading and Heathrow in the west of the capital with Shenfield and Abbey Wood in the east. This will drastically reduce the travel time for residents of the above suburbs and cause an increase of house prices there.
London, of course, has always been considered a great option for real estate investment. For instance, the real estate agency Chestertons forecasts an 8.2% price growth in the London Metropolitan Area by 2026. Jones Lang LaSalle also believes that by 2022, prices will increase by 6% in this region and by 4.5% in the other parts of the United Kingdom. This trend will continue over the next four years. The value of housing in London will grow by 25.8% and nationwide, by 21.7%.