London has been constantly alluring global attention owing to its stable and secure political, economic and physical circumstances. London is not only a winner in the UK, remaining resilient to the rest of UK; it is also a promising economic leader, internationally. Ranked by GDP, London is currently the fifth largest city in the world. Price Waterhouse Coopers forecasts it will move to the fourth place, overtaking Chicago, by 2025. London’s economy is expected to grow at an average pace of around 2.2% a year according to PWC, illustrating the characteristics of a strong financial hub
London has been a global favourite since long offering maximum transparency on property titles. With a growing global demand for ‘Prime Central’ property in London and no CGT for off shore investors; overseas investors are the key driver of this market. Investors can easily enter and exit the market at any time concentrating solely on enhancing their investment portfolio. Having more than 50% buyers from overseas and around 14% from the Asia Pacific region; London boasts of having more international homeowners than New York, Paris, or Singapore.
When it comes to investing abroad, almost every Indian’s first choice of a second home is in London. The political, economic and physical security that London offers plays a large part in this desirability. A small studio apartment or a lavish penthouse, large green estate or the luxurious hotel chains; London real estate scenario is transforming on a comprehensive scale with more and more Indians flocking the realty market. It’s not only the end users but now even the Indian developers, are eyeing the trophy assets of London. Be it the falling rupee or the faltering realty market in India , developers are now waking up to the opportunity of building in London which is the most natural trophy second home market for their local high net worth customers.
With the population already having crossed 8 million and swiftly growing, London with boundless employment, educational and cultural opportunities is expected to add 375,000 households by 2020. In the last decade the city has seen an exponential growth both in its economic and its population terms, having an upward impact on the pricing of homes.
On an average London has seen its home prices rising by nearly 44 % over the past seven years. This has undeniably created a huge need for affordable housing.
Considering this, The Mayor of London recently announced 11 new Housing Zones that will provide 24,554 new homes and create new neighbourhoods.
The government has an additional £200 million designated to these 11 zones, which stretch from Havering to Kingston and Enfield and will bring the total number of planned zones in London to 31, which in turn will see 77,000 new homes built. Almost 34% of these homes will fall in the affordable category, thus being an extremely relevant step to ensure and boost affordable housing.
About the author
Mona Jalota works at Colliers International India as Director – NRI & International Residential Services. She is well versed with various aspects of Real Estate in international and domestic markets and has worked for 8 years in the global markets for inbound and outbound sales. She has an elaborate performance track record and has launched in India products of developers from various locations such as London, New York, Malaysia , Kenya , Muscat etc.