Real Estate Investor Magazine South Africa March 2016 | Page 52

UK

Why Invest in London
London Property is the place to be
BY JAMES GLEW

M

ore and more South African investors are
looking offshore for that property deal of
a lifetime. Internationally, there is a lot
of uncertainty affecting how the Rand does against
established currencies like the Pound and the Dollar.
Economic growth is under severe pressure in South
Africa leaving investors with limited options in
terms of buying shares. And while the Rand/Pound
discrepancy is troubling, London has remained an
attractive option for South African investors looking
to purchase property abroad.

Some facts about London:

• It is the largest city in Europe
• London is one of the largest rental markets
alongside New York.
• The city contributes 20% of the GDP of the
whole of the UK.
• 75% of the Fortune 500 companies have offices
in London.
• Greater London covers 620 square miles and has
a population of just over 8m. (in comparison to
Cape Towns 965 square miles with a population
of 2.85m)
• There are 13,000 people who live on every square
mile of London
As London is a global market there are always many
nationalities purchasing property, meaning that if the
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MARCH 2016 SA Real Estate Investor

Londoners cannot get their deposits together someone
else will be taking the apartment. These include New
Zealanders, Australians, Chinese, Indian, Russian
and more importantly, South African buyers
Diverse and highly adaptable, with steady residential
development, London’s property market is ever
evolving.

Diverse and highly
adaptable, with steady
residential development,
London’s property market
is ever evolving
The Current State of the London Market

Increased competition in the mortgage lending
market, stronger economic growth, demand from
cash only buyers and a relatively lack of stock in a
market that is geographically constrained has meant
that the average London property has increased in
value by 6,7% in the 2015 year and by 51% in the past
6 years.
Many investors are looking for steady returns in an
ever-increasing volatile world, offering low interest
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