The present economic climate and future expectations are two of the most prominent aspects for real estate investments. The anticipated future yields of real estate investments in London are quite high. This is further accentuated with the residential and commercial property Central London development that boast additional amenities and facilities that attract a lot of attention by budding professionals in the capital, as predicted by a noteworthy agency.
London continues to hold a strong position as one of the most preferred cities of the world to invest in property, and the same is very unlikely to change anytime soon. As opinionated by property analysts, amongst the three major centres of property investments in the world, The New York City – United States, London – United Kingdom and Tokyo – Japan, London is the only city that is most unlikely to be thumped down off its growth scenario. Though there are other evolving cities such as Abu Dhabi, Mumbai etc. that tempt the international property investors, the City of London holds greatest attention thanks to its continued tradition of being the safe investment destination.
Furthermore in the present scenario, the mortgages in United Kingdom are far more less than what they were when the base rate initially fell to 0.5 per cent. Though it is slightly difficult to avail a mortgage in London, nevertheless those who stand credible enough can now conveniently access significantly greater deals in investments. If we look at monetary rewards of property investment in current times, those who are borrowing money will pay far less over the initial term of the mortgage than what they had to few year back on a similar investment. Also the statistics show that with a 5 year fixed rate mortgage is available at 3.29 per cent and at a 10 year fixed rate they are available at 3.99 per cent and at life-time base rate tracker at bank base rate plus 1.99 per cent, it is a sizeable saving for those with an undemanding loan to value requirement.
With the present annual growth rate of 10.5 per cent, the prices of prime properties in London, especially commercial property Central London and commercial property in East London rose by 0.9 per cent in August 2011. Observing the current economic reforms in the light of 2012 Summer Olympics and Paralympics, it is entirely realistic to expect the price growth to continue especially in commercial property in East London, the location where 2012 Summer Olympics will be held.
