In what’s been an exceptionally turbulent week for the markets, IFA Shops takes a look at London property investment, and whether in fact the residential asset class is looking as safe as houses.
Analysis released this week from Cushman & Wakefield has found foreign investors have cashed in on a total of £3.4bn in the past two years from investments in the Capital.
Against a post-election backdrop, Cushman & Wakefield’s quarterly analysis found the London residential market is, however, looking more stable, and there is a particularly strong investment appetite for super prime areas in pursuit of high capital appreciation, such as Knightsbridge, despite the average sub-3% yields currently on offer.
That said, interest right across the market is strong with high private and institutional demand for assets with conversion and asset management potential across the city.
On the contrary, research this week by Knight Frank for Bloomberg seems to suggest that interest in London property is waning among international investors, particularly across Asia. Investor confidence has been knocked by concerns over the Chinese economy and stock sold-off in Shanghai and Shenzhen.
As always, we’re keen to hear your views. What are you seeing happening in the London property market?