Source: Mansion Global
Even with the U.K.’s upcoming departure from the European Union, property buyers in London may be able to double their investment over the next 15 years, according to a research released by global real estate consultancy JLL earlier this week.
Using Oxford Economics data based on a “hard” Brexit (meaning the U.K. would leave the E.U. single market altogether, reverting to World Trade Organization rules), JLL said that London’s real estate investment is expected to generate an overall yearly return between 4% and 7%.
And this is a relatively conservative estimate, said Nick Whitten, JLL’s residential research associate director.
“JLL figures show that house price growth in London over the past 35 years has averaged 8% per annum through a period that included three recessions,” he said.
JLL analyzed the forecasted average house price gain in each London borough from 2016 to 2030 to show the winners over the medium-long term.
There is the potential to double the value of a home in some parts of London by 2030, most notably Waltham Forest, Newham and Haringey in the east of London, where prices are projected to rise by 100%, 94% and 91% respectively (See the map below for more price projections).
“The east of London is expected to be a significant driver in terms of the future economic growth of London driven by the rise of the likes of Silicon Roundabout in Old Street, the Queen Elizabeth Olympic Park and the new Crossrail east-west commuter railway,” said Mr. Whitten.