With long-term investment potential, London’s commuter belt promises a strong capital appreciation, high rental yields, and a lucrative investment opportunity.
Despite the appeal of owning property in London, many individuals are locating to the outskirts of the city to save on property costs. With London’s urban zones exceeding 11.9 million, business savvy investors are looking to take advantage of this transition as Londoners move towards England’s South East to areas including; Essex, Kent, Berkshire, Surrey, Hertfordshire, Bristol, and Buckinghamshire. One Investments Global-a trusted property investment company headquartered in Central London with regional offices located in Dubai, claims that commuter towns are positioned strategically and offer individuals a wide range of benefits. With many appealing features, investors have set their sights on towns located within 45 minutes of the country’s capital.
Highest Capital Growth Rate
With an influx of foreign capital in London, individuals and families are locating to the commuter belt and for the first time in the last decade property prices in London’s suburbs are expected to outpace the city. Large-scale investment projects such as a crossrail can provide a boost to the economy and often increases housing prices. Top 2017 performers included Dursley Bristol, which had an average growth rate of roughly 9.7%, and Bromsgrove, Birmingham coming in at approximately 9.6%. The continued property demand in these areas makes them top investment choices for the upcoming year.
The development of transport infrastructure is playing a significant role in the investment of commuter towns outside of London. New shops, schools, and restaurants are being built to ensure maximum accessibility to amenities. A prime example is a $20 billion ‘Elizabeth Line’ Crossrail that is expected to open in December 2018 and is considered one of England’s largest infrastructure projects. Once the Elizabeth Crossrail is operational, it will carry an estimated 200 million passengers per year and improve access for approximately 750,000 workers commuting to the capital. Likewise, with over 40 stations located along its route, experts predict an increase of nearly £5.5 billion in added real estate value in the following few years.
With the significant amount of improvements taking place, early investors could make a substantial amount of capital only a few years down the line. According to One Investment Global, locations with connections to London and areas of regeneration are also more likely to create a significant rental yield.