Sort our posts to find what you're looking for

HOW TO OUTPERFORM IN LONDON PROPERTY

4 July 2014

New data demonstrates just how much our investors have benefited from our recent London developments‏

As we continue to launch more UK projects, we thought we'd publish a little more insight into our recent track record in London. This analysis is based on recent domestic sales data from the UK – have a look through to get a better idea of how our business model has kept us ahead of local markets and seen our investments significantly outperform over the past year.


VALUE IN THE CITY – LOVAT LANE

705_ExteriorMontage_IMG_0769_2013-11-19,a.jpg

In January of this year we released a very exclusive project in one of London’s most undersupplied and historic areas. In the heart of the City of London just around the corner from London Bridge, 27 Lovat Lane offered eight luxury pied-à-terres at an average price point of just GBP1,204 per square foot.

Unsurprisingly there was huge demand for a high-quality development like this in such a central location, and all units were reserved within 24 hours. To show just what good value this represented, we can compare with a nearby development, also on Lovat Lane, that we recently evaluated and subsequently rejected. That project offered similar specifications to our apartments at number 27, but was priced at GBP1,450 per square foot – that’s 20.4% higher than the prices we secured for our investors just four months earlier.

And while a development like this in the City of London is certainly a rare opportunity, finding this level of value in our projects is not. We recently secured access to a duplex apartment at 28 Lovat Lane, which was quickly snapped up by one of our investors at just GBP1,044 per square foot – that’s 28.0% less than the price at which the comparable development on Lovat Lane is currently being marketed.


VALUE ON THE CITY ROAD – EAGLE HOUSE AND THE LEXICON

Eagle House Exterior

A similar story can be seen at Eagle House, a very popular development located at Old Street roundabout that we launched in April 2013.

When we marketed apartments at Eagle House, our one-bed units were available at an average per-square-foot price of just GBP828, while our two-beds were priced at GBP838. Apartments in the same development – now renamed the Eagle for domestic sales – are currently available on the local market at the much higher rates of GBP1,310 and GBP1,363 per square foot respectively.

After standardising these prices to take account of differences in apartment size and the floors on which they’re located, these prices represent typical increases of 33.3% and 28.7% after only a year.

The Land Registry reports strong local market growth of 21.5% in the Old Street area over the past year, bearing out our confidence in this part of London as an investment destination; the further capital appreciation of up to 11.8% above local market growth seen at Eagle House shows just what good value we’ve been able to offer investors.

Lexicon - Hummgingbird CGI FINAL.jpg

We’ve seen similar results nearby at the Lexicon, located on the City Road Basin. When we launched in September 2013 our one-bed apartments were available at an average per-square-foot rate of GBP1,066. The development was launched on the local market earlier this year, with one-bed units going for an average per-square-foot rate of GBP1,374.

Again, after standardising these prices to take account of differences in the apartment sizes and the floors on which they’re located, these prices represent a typical increase of 16.8% on the prices we offered our investors, just six months later.

Like Old Street, recent market growth in Islington has been impressive, further supporting our confidence in this part of London by reaching 8% over the past two quarters according to Nationwide. At the Lexicon we’ve again seen capital appreciation outperform local increases, with prices rising to 8.8% beyond local market growth.


We hope you find this information encouraging when considering investing in London property through us. We’ll continue to identify top developments in locations that are primed to appear on the mainstream investor’s radar, keeping you in that investment sweet spot that lies just ahead of the market.

If you have any questions about any of the information above of about property investment in general, please feel free to get in touch by emailing; info@ipglobal-ltd.com

IP Global

Written by IP Global

IP Global’s full-service approach is built on extensive market research and analysis combined with a significant financial commitment to every investment we offer. We are able to manage the entire investment process end-to-end, from sourcing, financing, and management to those all important exit strategies, making investment in real estate as straightforward as investing in more traditional asset classes. Our expertise, experience and strong record have produced over USD2.8 billion in international real estate investments in over 30 markets worldwide.

Related posts