Prime, prestige, luxury are all terms referring to the top end of the residential property in central London. The Prime Central London or PCL market is affected not only by domestic investors, but also international property investors. The tangible characteristic of residential property, especially when the economic outlook for other asset classes is uncertain, attracts the growing amounts of internal and external investment in London’s prime market.
The growth in house values creates an opportunity for all types of investors to purchase a property as a form of investment in order to increase their wealth accumulation capabilities.
Investors acquire property in hopes of generating financial returns and they reflect rental yields as well as capital growth in their investment decisions and strategies. Residential property is widely perceived as a strategic investment that can survive economic cycles and the impact of global recession. In the aftermath of the global economic crisis, London’s prime property market recovered well and took an upward trajectory that increased at a rate more rapidly than the rest of the UK’s regional market. Consequently, the rapid capital growth offered by prime property in central London creates the appetite for property acquisition in this sector.