Travel restrictions fail to dampen global investor appetite for prime London property

Property Reporter
6th July 2021
London 7

London remains one of the world's most sought after markets for property investment despite ongoing travel restrictions caused by the pandemic, according to new research.

International real estate experts, Astons, analysed prime real estate values across 18 global destinations in 2020 as well as looking at the forecast growth for 2021 and what this would mean for the world’s wealthy buyers looking to these cities.

Based on a property sized at 43 square metres, global prime real estate values are expected to climb 1.8% in 2021 when compared to 2020, putting the average real estate value across these 18 destinations at £717,429.

However, three global prime markets are expected to see the value of the average prime property remain above £1m. Monaco is forecast to see an average real estate value of £1.m in 2021, with Hong Kong (£1.3m) and London (£1m) also sitting considerably higher than the average.

Geneva (£905,550), New York (£891,505), Singapore (£880,395), Paris (£747,595), Los Angeles (£727,387) and Sydney (£725,037) are also forecast to see real estate values remain higher than the global average in 2021.

Along with Berlin, Sydney is also expected to see the highest rate of growth where real estate values are concerned, with an expected 5% uplift forecast for 2021 when compared to the average across 2020.

At 4.5%, Miami is also expected to one of the largest uplifts in prime real estate values, as is Shanghai (4%) and London (3.5%).

Arthur Sarkisian, Managing Director of Astons, commented: “The global prime market has, of course, been impacted by ongoing travel restrictions preventing many international buyers from transacting as they may have otherwise.

"As a result, annual appreciation in real estate values is forecast to climb slightly across many cities, although some are expected to see a stronger performance than others.

"However, the very top end of any global property market performance is based very much around quality over quantity and so as the world does start to reopen, months of pandemic restrictions are sure to yield to increased demand as many look to regain lost time.”

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