London’s property market has emerged as a standout investment over the past decade, yielding a remarkable return of over 44%, according to a comprehensive market analysis by British estate agency Foxtons. The study compared the performance of London’s residential property market with various investment options, including Bitcoin and the FTSE 100, revealing the real estate sector’s impressive growth.
Amidst the diverse investment landscape, Bitcoin claimed the top spot with an astonishing yield of almost 5,000% over the last ten years. The cryptocurrency’s average value surged from $840.3 in December 2013 to an impressive $42,544 by December 2023. Gold, often considered a safe-haven investment, secured the second position with a solid 66.8% return on investment during the same period, rising from $1,223.9 in 2013 to $2,042 in December 2023.
London’s property market took the third spot, outperforming traditional investments like the FTSE 100 index, which saw a more modest return of 15.7%. The average value of a London home in December 2013 stood at £352,028, and as of the latest data from the Land Registry, it has climbed to £508,037, marking an increase of over £156,000. This substantial appreciation reinforces London’s status as a prime destination for property investment.
On the flip side, some traditional assets have experienced declines over the past decade. WTI Crude Oil, Brent Crude Oil, and natural gas recorded negative returns of -26.3%, -30.2%, and -41.5%, respectively, illustrating the evolving dynamics of the investment landscape.
Foxtons CEO Guy Gittins commented on the findings, stating, “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.”
Gittins expressed optimism about the London property market’s future, anticipating a high level of investor interest in 2024, as the market is perceived to have turned a corner. Despite challenges in the past year, the resilience and consistent growth of London’s real estate market underscore its appeal as a robust and lucrative investment option.
