Why is Real Estate in London So Expensive?
Location
London is superbly located, in terms of the rest of the world.
It is in between America and Europe and offers quick transport to top European destinations such as Paris, Brussels and Amsterdam.
Business
London is one of the global hubs for international business, which has made it a very attractive base for global businesses and corporations, both historically and currently.
Historical Significance
London offers potential property buyers a wide range of historically important areas in which to buy.
Due to London’s rich history, some of the architecture in London is stunning and offers potential property purchasers the chance to buy a property in a genuinely beautiful historical building.
“This is certainly the case for best in class properties in prime areas of London, as they are popular with upsizers, growing families, downsizers as well as people wanting to live in them for 10 - 20+ years.!”
Foreign Investors and Buyers
Foreign investors and buyers have been a huge reason for the increase in 1-bed property prices in London, and in particular in Central London.
London is a very safe place for foreign investors to put their money (even in light of the 3% foreign buyer stamp duty charge!) and it has shown to be, on the whole, a good place to invest in 1-bed properties over the long term.
Supply and Demand
Due to the high demand for good properties in London, they are - generally speaking - in short supply.
This is certainly the case for best in class properties in prime areas of London, as they are popular with upsizers, growing families, downsizers as well as people wanting to live in them for 10 - 20+ years.
Luxury Developments
In prime areas of London, as well as further afield, there seems to be almost constant property development, which generally speaking caters to the wealthy purchasers that are looking for high-end properties.
These developments then increase the value of surrounding properties, as well as areas.
Would you look to buy a home in a prime area of London, even though it is one of the most expensive areas in the world for property?