Acquiring property abroad is a serious undertaking that requires setting clear investment objectives and goals. Why do you buy the property, when do you expect it to pay back and for how long? What funds are you planning to use: personal or borrowed? All these questions need to give an answer, and only a good understanding of investment objectives to start the selection of the object.
Analysis of the construction sector and real estate market in London has allowed experts to conclude favorable trends that ensure the profitability of investing in finance, combined with maximum economy – we are talking about the sale of real estate in London economy class.
Budget property and housing economy categories are a major interest for the non-residents from CIS countries, Eastern and Central Europe. Initially, the first wave of real estate sales of fuel-efficient options falls on the period of the 80s, the transactions in this period were mainly conducted by Arabic countries reps. However, since 2000, domestic investors were the main contributors to the budget accommodation in London. According to statistics, every 15th house, bought in London, belongs to Russian investors. Property transactions in the London economy in the suburbs reveals a large share of CIS and Mid East investors. This is due to a large percentage of students, immigrants and less wealthy investors. Such specificity investments dictates the government of London certain building rules: projected budget sleeping quarters are built dormitories, commercial office buildings of lower, yet still decent class.
The most economical option of residential property in London can be a studio apartment in the so-called slums of London. In certain quarters, the cost of a one-room apartment can start from as little as 50,000 thousand pounds. A large share of economy class real estate in London also accounts for sleeping quarters in the typical multi-storey prefabricated houses. The price of one-room apartments of average size is equal to an average of 150,000 thousand pounds. For comparison, the average cost of luxury apartments in a respectable area of London, Knightsbridge, reaches as high as 6.5 million pounds. However, the price would be larger due to the legal expenses – a participation of conveyance solicitors is essential to complete a purchase according to normal practices (the cost ranges within a few percent from the total price of the premises).
Considering the property options in the eastern region of London is another direction worthy of considering. The estimated cost of apartments in the east of London ranges from 150,000 – 250,000 thousand pounds. East London boasts the most cost-effective price per square meter of living space, ranging from 3.5 to 5 thousand pounds, which is a bargain against the background of, let’s say, West London, where the cost per square meter is way higher and varies from 13 to 15 thousand pounds per square meter; and of course, it is hardly comparable with the elite districts where the price per square meter easily goes beyond 20k.