Recently, London overtook Hong Kong to become the world’s most expensive city. The rising costs of an average property is regarded as what turned the tide, but other factors like living costs and the average wage were also taken into account. What about the buyers who don’t care about the rising price of bread, though? London, after all, is home to some of the world’s most expensive, luxury properties, prices of which can stretch to tens of millions of pounds.
With no worry that the precarious bubble that surrounds the current London property market might suddenly burst, the top end of the market is seeing no slow down as foreign buyers dominate. Billionaires from Europe, particularly Russia, the Middle East, and Asia are not only interested in buying vast mansions, but large blocks of flats and apartments. Much criticism stems from buyers sitting on homes and watching their value increase as first time buyers struggle to get a foot on the property ladder. There are even accounts of large blocks of luxury apartments being left completely empty, not even being made available for rent.
When buying these kinds of properties, the financial capital necessary means you have almost free choice of some of the most stunning homes on the planet, but the technicalities involved in the maintenance of such homes is often complex. The sheer size of the estates can make thorough inspections difficult, and extra components like swimming pools, elaborate gardens, and the latest technologies built into the home need to be carefully and regularly maintained by a qualified staff.
While sitting on small properties is proving to be a good investment for buyers, it is the bigger estates on the outskirts on the city that are hit hard when the bubble does eventually bursts. These properties can sit on the market for years, and the regular maintenance costs start to accumulate. Real estate agents will encourage the sale of bigger properties as it means they’ll earn a higher commission. If your intention of buying London property is to make money, though, homes in affluent areas like Fulham will handle the market falling better than more prestigious locales like the neighbouring Chelsea. Local real estate agents found on websites such as Featherstoneleigh.co.uk would be able to create an inventory of available properties that might make a much better return on your investment.
When looking for an estate agent for these kinds of properties, you’ll want to make sure the agent fully understands your requirements so they can best match you to what’s available right now or what’s in development. Specialist agencies are much more likely to be aware of any changes in this particular field than more general property firms. If you’re looking at a specific area of London, take a look at our property guides.