The latest market analysis by Foxtons has shown that when it comes to the returns seen over the last 10 years, the London property market ranks as one of the best places to have invested, with just Bitcoin and gold bringing a stronger return.
Foxtons analysed the performance of the capital’s residential property market against nine other popular investment options, from wheat to crude oil, natural gas to the FTSE 100.
Having been founded more than 40 years ago, no one has a deeper knowledge of the London property market than Foxtons, having seen first-hand how it has transformed over the years.
SOLD PRICE DATA
The latest research by Foxtons shows that, based on the latest sold price data from the Land Registry (Dec 2023), the average value of a London home has increased by 44.3% over the last decade.
In December 2013, the average London home commanded £352,028, but today it averages £508,037 – an increase of more than £156,000.
GREATER RETURN
Of all the investment assets analysed by Foxtons, just two have seen a greater return on investment over the same period.
Bitcoin sits top of the table having increased by 4,963%, while the price of gold is up 66.8% in the last 10 years.
However, London’s property market has outperformed all seven of the other investment assets analysed by Foxtons. In the last decade, silver has increased by just 22.9% in value, while investing in the FSTE 100 would have seen a return of 15.7%, with corn increasing in value by 7.9%.
Wheat, on the other hand, has seen a decline of -2.5% in value over the last 10 years, with WTI Crude Oil (-26.3%), Brent Crude Oil (-30.2%) and natural gas (-41.5%) also seeing a decline in value.
CONTANTLY CHANGING
Guy Gittens, FoxtonsGuy Gittins, Foxtons Chief Executive, says: “The investment landscape is constantly changing and while some traditional vehicles have seen a sharp decline in value over the last decade, such as natural gas, other emerging markets such as cryptocurrency have experienced a boom period, albeit with a heightened degree of volatility.
“However, it’s fair to say that bricks and mortar has remained one of the most consistent investments one can make down the years and the long-term returns speak for themselves.
“The London market is undoubtedly the pinnacle when it comes to UK property investment and while the last year may have been a challenging one, the value of a London home has still climbed considerably over the last decade.
“With the property market having now turned a corner 2024 has started on a very promising note and we expect London to continue to attract a high level of investment from investors of all shapes and sizes.”
