Exploring London Real Estate Opportunities
Yields in London property have, for a combination of reasons, been traditionally low. With rental prices already at record heights, yields suffer as a consequence (2% to 4%). The tide seems to be turning, though, with some London properties registering over 25% price reductions from their peaks. Rental values are therefore rising, in relative terms, as property prices are coming down. With yields becoming more attractive in London, the city may well become an attractive place to invest in, striking the right balance between strong demand and attractive returns.
The reason for this change in tide is, mainly, threefold. The property cycle is turning, Brexit is creating a lot of uncertainty and, the devaluation of the Pound, which has lost about 15% against a basked of currencies, including the Euro and the Dollar over the past two years. We currently have four opportunities under review.