What is the reason for the attractiveness of investments in the UK and London?
After the pandemic there were changes in the market, a number of segments lost their attractiveness, and others suddenly showed excellent results for everyone. However, there are those that remain as relevant as they were before the pandemic. London’s market remains attractive for investment despite economic difficulties and the pandemic.
Analysts conducted a survey among large companies and independent business people. The survey results showed that the UK capital remains promising for capital investment. As before the outbreak of COVID-19, 99% of respondents plan projects in London, and 79% are already investing in the local market.
In addition, the metropolis is developing much faster than other cities, the rate of recovery here is much better than in the regions, which have similar characteristics for doing business. London is attractive not only in terms of high income and fast payback. Investors, who took part in the survey, note that the city has excellent communication processes, ideal conditions for work, stable economy and high level of infrastructure development. Besides, during the second wave of the pandemic local authorities showed that they were ready for such difficulties and neutralized the danger in optimal time.
Knight Frank has published a report on the commercial real estate market. According to it, last year 333 billion dollars of transactions with these types of objects were made by private capital. These figures are 5% more than those observed in 2019. Real estate in the UK for several consecutive years is an attractive option to generate income, ahead of buying shares and bonds. Investments in facilities are considered safe and stable in terms of capital growth.
In most cases, private investors are focused on office buildings, hotels, real estate in the healthcare segment is not yet so popular. It should also be noted that businessmen are also considering alternative options for investment – promising types of objects that will allow them to get serious money in the future. In addition, investors take into account the latest events – pandemic and economic crisis, so they prefer to redistribute funds between different sectors.
The UK market is increasingly popular among citizens of the Middle East, Latin America and European countries. As in past years, the Chinese and Indians are actively making themselves known.
Separately, it is worth noting the growing prospects of such areas as health care and pension housing. This commercial real estate is in demand, and according to experts, it will grow in the future. Therefore, many investors are already investing in the development of such projects.
