London seen as real estate investment 'hotspot'

London continues to be seen as a safe haven for those wanting to use their private wealth for real estate investment.

A recent report by Knight Frank found that London is still a property hotspot and that areas of the city undergoing major redevelopments will see property prices increase by as much as 30 per cent by 2016.

Richard Bowser, editor of the monthly magazine Property Investor, agreed with the report stating that infrastructure improvements boosted by the Crossrail scheme will act as growth triggers in some areas.

He said: "Those who invest in such locations are more likely to see their investments outperform the average over the longer term.

"However, there are potential risks to any forecasts and the unresolved eurozone crisis is now sapping at business and consumer confidence."

Mr Bowser added that London is and has been a long-term magnet for residential property investors.

Recent figures from TD Waterhouse found that private wealth investors still consider shares in banks as a good sell or buy.
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