The London real estate market is forecasted to grow steadily in the next few years. By 2023, the average cost of a home is expected to rise to £649,000, an increase of 8.5% from 2018 levels. With continued uncertainty surrounding Brexit, many buyers are choosing to wait for more clarity before making any large purchases. However, this hesitancy has not stopped the market from moving forward. Below we’ll take a look at some of the factors that are driving London’s real estate growth, according to experts such as Kavan Choksi, and what you can expect if you’re thinking of buying a property in the near future.
London’s Population Growth
One of the main drivers of London’s real estate market is population growth. In the last ten years, London’s population has grown by over 1 million people and is now approaching 9 million. This increase is driven by both inward migrations from other parts of the UK as well as international migration. In fact, nearly 40% of Londoners were born outside of the UK. This diverse population is one of the things that makes London such a dynamic and exciting city.
As more people move to London, the demand for housing will continue to increase. This is especially true as more young people enter the workforce and begin looking for their own homes. The combination of population growth and limited supply will put upward pressure on prices in the coming years.
The Impact of Brexit on London’s Real Estate Market
Another factor that is affecting London’s real estate market is Brexit. Since the vote to leave the European Union in 2016, there has been considerable uncertainty surrounding Britain’s future relationship with its biggest trading partner. This has led many businesses to put investment plans on hold and has caused some individuals to reconsider purchasing property in London.
However, it’s important to remember that Brexit is still an ongoing process, and its final outcome is far from clear. In the meantime, life goes on, and people still need somewhere to live. As a result, Brexit has had only a limited impact on London’s real estate market so far. In fact, prices have continued to rise steadily since 2016 and are currently at record highs.
What to Expect if You’re Planning to Buy a Property in London
If you’re thinking of buying a property in London in the next few years, you can expect prices to continue to rise at a steady pace. However, given the current uncertainty surrounding Brexit, it’s important to be aware that there could be some volatility in the market over the next few years. If you’re considering purchasing property in London, it’s important to speak with a qualified real estate professional who can help you navigate these waters and find the perfect home for your needs.
Closing Thoughts
The London real estate market is forecasted to grow steadily in the next few years despite concerns around Brexit. Thanks to strong population growth and limited supply, prices are expected to rise 8.5% by 2023, reaching an average price of £649,000. If you’re thinking of purchasing property in London, it’s important to seek out expert guidance to navigate these waters and find your perfect home.
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