According to projections made by Knight Frank real estate agency, prices of property in some select hotspots in central London will in fact double by the year 2016. In their report they cite a number of reasons such as the volatility in financial markets along with new transport projects.
In light of this, both overseas and domestic buyers are flocking to snatch up property in the London residential real estate market and have been doing so for a number of years. They see this as a safe haven for their investments. Real estate in these hotspots have been beating the market tracker and has even been highly competitive with gold as a place to sink investment capital.
Part of the reason why property is gaining in value is the massive Crossrail project that will eventually link Heathrow to the west with the east side. This will be accomplished with tunnels under the city and this is an undertaking of major proportions.
What this means for those living adjacent to the financial district is that residents will soon be able to arrive at any of London’s three airports within a matter of minutes. These factors are driving prices up by the day whilst other areas of the country are seeing negative equity literally force homeowners out of their properties.
The only area of the City which may see property values increase more drastically would be Vauxhall in the south where it is expected prices to rise by 140% by 1015 whilst prices in Central London’s hotspots may rise by 118% by the same year.
It was at first feared that recent riots would have called a halt to the rapid property value increases in this area, but this was not evidenced. There is just too much evidence that the values of Central London properties will keep increasing in values to scare off prospective real estate investors.