CBRE Confirm London’s Top 10 Investment Hotspots For 2014
As London’s house prices continue to increase, the report launched by CBRE identifies those investment hotspots which offer the most potential for growth over the next few years.
Jennet Siebrits, Head of Residential Research at CBRE, comments:
“CBRE has analysed a wide variety of metrics which includes local demographic trends, upcoming large scale regeneration projects and infrastructure improvements such as Crossrail, in order to consider which of those London boroughs will deliver the very best return.
“During recent years, London’s thirty three boroughs have witnessed an increase in demand, as house prices continue to rise and the wider market attracts wide-spread international investment.
“While many of the established local markets in areas such as Westminster and Kensington & Chelsea continue to appeal to the global audience, CBRE has recognised a surge in popularity of areas such as Hackney, Islington and Merton, all of which are building reputations as destinations in their own right and are set to achieve record breaking capital growth during the next few years.”
Camden: The London borough of Camden enjoys an array of desirable areas including Primrose Hill, Hampstead Heath and Camden Town itself. With a strong reputation of combining a fashionable young district with a traditional village-like lifestyle, the local housing market has out-performed most of the rest of the capital with an average growth of 11% during 2013, and 100% over the last decade.
The current average house price in Camden is £687,539 resulting in the third highest house prices in all of London. With plans to deliver 50 new buildings, 2,000 new homes, 20 new streets and 10 new public squares, further wide spread regeneration of Camden is set to only add to the appeal of the area.
Merton: One of the capital’s quieter suburbanlocations, Merton is projected to achieve a 1 year price growth of 9.4% during 2014. Offering direct access and fast transport links into London, the leafy and village-like atmosphere will continue to attract interest as a more affordable alternative to its typical competition of Richmond, Wimbledon and Fulham.
As average house prices in Merton reach £380,656 during 2013, the reputation of the borough is further strengthened with a local population set to grow 21% by 2023.
Richmond upon Thames: Situated to the south-west of London, Richmond is one of the capital’s most popular locations, offering a vast array of high-quality schools, riverside location, and extensive green space and boutique retail stores. The affluent borough currently enjoys an average house price of £514,439.
With prices set to grow 8.6% by 2015, and average yields reaching 4.9%, the well-established local property market of the borough is projected to remain resilient to wider economic uncertainty.
Southwark: The north of the borough is now one of the most popular spots in London, following huge culture-led regeneration over the last ten years; it has pushed average house prices to £428,742 with an average 1year price growth of 9.8% during 2014.
As 40% of Southwark is now ear-marked for regeneration, with the transformation of Elephant and Castle set to lead the way, the borough has further cemented its position as one of the capital’s most appealing investment hotspots for 2013.
City of Westminster: Current average house prices in this world famous borough have reached £829,251, and will continue to attract significant overseas investment as demand for prime and super-prime residential offering in the heart of the capital continues to appeal to a global audience.
With projected 1 year house price growth of 3.8%, there are only a few pockets within the City of Westminster which are underperforming, however areas such as Tottenham Court Road and Paddington are set to enjoy major transformation with the arrival of Crossrail, which will further benefit the borough as a high-quality residential location.
Wandsworth: The London Borough of Wandsworth continues to enjoy large scale regeneration; most notably the Battersea and Nine Elms area is set to become an extension of London’s prime markets. Through combining the well-established local housing markets of Balham and Wandsworth Common, house prices in the borough are £471,228, with a projected 1 year house price growth of 11.2%.
Kingston upon Thames: Providing fast direct links into Central London, the London Borough of Kingston upon Thames is most popular with families looking to enjoy some of the best schools in the capital. Comparatively affordable with average house prices at £342,297, the area consistently sits against a backdrop of low housing supply, which is set to further increase house prices by 6.7% during 2014.
Islington: Enjoying close proximity to the City, the London Borough of Islington has a diverse cultural offering and a vibrant night life, complemented by quieter cafe culture environments in many pockets of the area. The borough continues to appeal to a range of buyers including young professionals, families and students, with a large population who have lived in the borough for decades.
With the housing supply unlikely to keep pace with a growing local population, the current average house price in the borough is £539,203, with a 1 year price growth of 8.8%.
Hackney: The increasingly popular borough of Hackney has witnessed house prices double over the last decade; with average prices now reaching £539,203. Enjoyed by a large community of young entrepreneurs and creatives, this flourishing area is further set to benefit from large scale regeneration and wide-spread improvement to infrastructure links.
With continued high-quality residential accommodation emerging on Hackney’s skyline, the price growth of 12.8% is the highest of the London boroughs by 2015.
Kensington & Chelsea: Similar to Westminster, Kensington and Chelsea is one of the most exclusive boroughs in the capital, with average house prices reaching £1,168,479 during 2013.
The demand for prime property in this location continues to appeal to both a domestic and international audience as it has consistently out-performed the wider market throughout the last five years. The impressive projected 1 year average house price growth of 7.5%, alongside a central location with long-term low risk profile, provides an all-round great investment.