London Property Market Predictions For 2012: Olympic Growth for Greenwich Investment

London property investment has always been popular, attracting investors from around the world. If anything, the economic downturn has actually increased interest in London property. Fluctuations in currency exchange and the Eurozone crisis have led to more and more global investors pouring their capital into London portfolios.

Check out our London property investment deals right away and read on for the full story.

How the global recession is good for London property investment

Of course, London has obviously seen a decline in both the commercial and residential markets during the global recession. However, bank repossessions and distressed properties are more abundant than ever, giving shrewd buyers the chance to invest in locations they may have previously been priced out of.

Supply and demand also plays a major part. There is very little room for new building in London, leading to buyers and renters getting into bidding wars over existing stock. This is why prices in London have risen 23% between Q1 2009 and Q4 2011, while values in the rest of the UK have ridden a rollercoaster.

“Best performing region” over 2011

Nationwide’s chief economist, Robert Gardner, comments: “London saw the strongest quarterly growth rate, with process up 2.6% quarter-on-quarter. This pushed the annual rate of growth up to 5.4%, making London the best performing region over 2011.”

International experts agree that London is a property hotspot right now, generally stating “there is a very strong case for putting money into London property.”

So, what is the outlook for 2012? Whilst it is impossible for anyone to accurately predict the future, there are incredibly strong indications that the London property investment market will grow even stronger in 2012.

Olympic growth through 2012 and beyond

The pending Olympics is one. Between now and the lighting of the Olympic torch, we can confidently predict a significant increase in investment in the city, in the infrastructure, public transport, new attractions and more. This will generate employment, boost the economy and lead to increased demand for property to buy and rent.

What happens when the party is over? At the time of the Olympics there will be much greater demand than normal and people will be willing to pay more for accommodation. It is almost certain that investment properties in London will make a good income during the period.

The work done to develop the infrastructure will make London an even more desirable place to live, holiday and open businesses. This will benefit investment property over the long term, by maintaining high demand for both commercial and residential stock to buy and rent.

Furthermore, recovery is London’s property industry is expected to filter through to other areas of the UK throughout the course of the year.

A strategic location

Of course, with all property investment, location is critical. To make the most of your investment, you (ideally) need property in an area which is well-connected to transport links, has good schools, recreational activities, commercial centres, local shopping, regeneration and green spaces. All add to the quality of life renters look for when choosing a home. So, the desirability of your investment property is vital to the success of your property investment!

This is, perhaps, truer than ever when investing in London. So where should you be investing in London?

Greenwich tipped for gold

Many analysts are tipping investors in the Greenwich area to achieve higher than average returns from their London property. This is for a number of reasons. Growth in house values have an additional boost from the forthcoming creation of major employment centres in Greenwich Peninsular and nearby Stratford City, in addition to expected twofold growth in employment in London’s major business and financial centre, Canary Wharf.

Greenwich is, indeed, a strategic location and is undergoing a massive transformation with one of the largest regeneration agendas in the UK. It is just 10 minutes to Stratford, 11 minutes to Canary Wharf, 16 minutes to London Bridge and 23 minutes to the heart of the City. In Canary Wharf, employee numbers are set to rise from 78,000 to 160,000 in the next year.

Regeneration and booming employment

Stratford, as host for the 2012 Olympic Games, is benefitting from the Olympic Park and Stratford City – expected to create 35,000 permanent jobs. Greenwich will also host some of the 2012 Olympic Games - equestrian and modern pentathlon events at the Royal Park; gymnastics and basketball at the O2; and shooting events at the Royal Artillery Barracks.

On top of this, development of the nearby Greenwich Peninsula looks set to create 25,000 permanent jobs to 2015.

Growth in Greenwich itself is tipped to provide 29,000 new jobs, 150 more shops, a new business district with an anticipated 3.5 million square feet of office space, 48 acres of parkland and a transformed river frontage.

An area with it all!

All this just serves to heighten the area’s desirability. Already known as a popular and charming area of London, with a lively town centre and numerous venues and attractions, Greenwich is going from strength to strength.

Attractions already include the Royal Park; the Royal Observatory; the National Maritime Museum (Maritime Greenwich was granted UNESCO world heritage status in 1997); the O2 venue; a host of other historical landmarks; and many open and green spaces including the Ecology Park, Greenwich Royal Park and Blackheath Common to name but a few.

Greenwich is also a hub for national and international students. Greenwich University, a world heritage site, has in excess of 13,000 students. Other main colleges in the area are Ravenbourne (with approximately 1,600 students) and two dedicated centres for the dramatic arts (Bird College and the Rose Bruford).

Next steps for success

This is all excellent news for Axis investors, as we have two London deals in this hotspot area!

Download our London flats Investment Guide.
Download our Greenwich student accommodation Investment Guide.
Sign up for our free student accommodation webinar on Thursday 9^th February from 19:00hrs – 20:00hrs GMT.

Contact your dedicated UK portfolio manager, Zoe Bryant, on zoe@axiscontact.com or +44(0)1273 447 300.

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