Asian investors may have become one of the most powerful forces in the global property market in the last few years, but major shifts are coming.
Emerging trends bring a need for change in investment destinations and vehicles for those seeking to preserve their wealth and enjoy superior income levels.
Some of the “hotspots” of the last five years have certainly seen their day. At the same time, many world economies will face major uncertainty for the next five years. Whether by an eternal optimist or the most conservative of investors, what investment moves are made in the next few months will certainly dictate how wealth is distributed and who is still enjoying success when the dust settles.
The Lure of London Property
The recent global crises have only increased the demand and value of central London property.
Property in central London is now widely considered the third-safest haven for investment, along with gold and Swiss francs. In fact, considering Switzerland’s recent trials, prime London property may be easily on par with sitting on gold bullion, and with even more advantages.
For those who have been closely watching the U.K. property market in the news, it is essential to remember that London home prices are not directly tied to the rest of the country. Prime central London property has emerged as its own asset class, moving independently from the rest of the nation.
So where are London property values headed? The statistics show that the most elite portion of the central London market has risen 49% in the last years. All analyses and projections suggest that this is a trend which will continue to blossom.
Global Forces Pushing an Impending Spike in London Investment
To begin with, weakness in once-popular French, Spanish, and other European markets are clearly set to increase demand for investments in London.
Canada has been a haven for many in recent years as well as a popular destination for many Asian investors, though it is clearly set to suffer from growing uncertainty and softness in key markets.
The U.S., which leads the global property crisis, may still be one of the greatest predictors of what lies ahead around the world. However, in terms of attracting investment over the next five years, it suffers from being in a position between having seen its best rebound in many cities and a continued shadow of uncertainly that many will watch to dissipate before moving in more of their wealth. Most significantly, however, a rebound here means much better prospects on the way for investors in London.
Of course, Hong Kong has enjoyed its position as one of the chief recipients of Asian investment capital recently. Unfortunately, its popularity and immense surge in housing prices on the influx of Chinese money is leading to a clampdown on foreign investment.
Most notably, this includes a new 15% buyers’ tax which will certainly take some of the shine off of property opportunities in Hong Kong and turn eyes elsewhere.
Once Asian money begins flowing into central London property in earnest in the coming months, the rush and competition for prime properties will certainly boom, indicating that now is the time to invest for the best spreads and maximum growth.
The Privilege of Holding Prime London Property Isn’t for Everyone
While everyone may crave the prestige which comes with owning a piece of prime London property, the privilege certainly hasn’t been open to everyone.
The majority of U.K. buyers have to recognise that owning here may well be forever beyond their means. It is even true that not even all prosperous Asian investors have the millions of pounds in liquidity to act on this moment of opportunity with direct personal investments of their own.
However, there are opportunities for sophisticated and savvy investors to enjoy the advantages and satisfaction of investing in this property sector through select investment vehicles offering participation in owning elite London rental property.
This isn’t just about the anticipated capital gains or safety these properties offer, but also the attractive rents, yields, and cash flow they will produce in the meantime.
New opportunities for investing in prime income properties in areas such as Shepherd’s Bush, Notting Hill, Piccadilly, Pimlico, and Hammersmith offer the chance to enjoy the benefits of the most sought-after and rewarding properties on the planet.
Regardless of whether investors are optimistic or pessimistic about the evolving global economy in the short term, this is a prestigious opportunity and pivotal moment to gain entry into this wealth preservation haven.
