MARKETS WITHIN MARKETS

A closer look at residential investment options in London could easily yield attractive possibilities.

“Opportunities are everywhere,” says Eli McGeever, Director, Research &Technology Innovation at One Global Labs.What is important is to understand and look at markets within markets, he adds.

“The headline London property growth rate isn’t consistent across the city.That’s true for past performance, as well as the future. Property price growth is rarely consistent, with growth spurts followed by periods or plateau or decline.What is consistent, though, is that prices rise over time,” he explains.

McGeever adds that property is a long term investment, and on average, those that held property in London over the last 10 years did well, generally outperforming the regionals.

“A lot of talk has revolved around the flight to regionals during the pandemic.The data shows that whilst some locations haven’t fared as well as others, there are markets in London that have performed well. If they’ve performed well during the pandemic, then imagine how they’ll perform when London is ‘officially’ back in favor.”

In terms of settlements, Greater London has had its most active six month period since 2015. It shows in the data that the market is active and people haven’t forgotten about London. What’s more is this holds true for both the Inner and Outer London, McGeever suggests.

“The data shows that it doesn’t matter if you preferred Inner London, Greater London or the regionals, with the right research and analysis, your property purchase can outperform the average.”

PERFORMANCE HIGHLIGHTS: LONDON RESIDENTIAL MARKET Greater London:

• Across all property types, prices grew by 7.69%Y-o-Y

• Overall, outer London outperformed inner London, as the generally accepted trend of flight to the ‘burbs’ suggest

• However, there were winners and losers in each region. It’s important to look at markets within markets

Outer London:

• On average, prices grew by 10.75%Y-o-Y

• Some locations showing lower growth than inner London’s average

• The Borough of Merton showed close to a 12%Y-o-Y capital growth, with an average price now over £700K

Inner London:

• Prices increased overall by 4.96%Y-o-Y. However, not all boroughs showed positive growth overall.

• Conversely, some inner London boroughs stood out, such as Southwark posting close to 10%YoY growth or Hackney with close to an 11%Y-o-Y rise

AWEALTHOFOPTIONS

Here are some well-priced residential properties in London that will make good additions to any investment portfolio.