Property investors should look to Northern England for best capital appreciation
Foreign property buyers looking to invest in the UK would be forgiven for setting their sights solely on London, as there is a new property hotspot.
According to a new report from Jones Lang LaSalle, however, the smart money is on Leeds, the regional capital of England’s Yorkshire and Humber region.
Driven by the financial and business services sector, the economy in Leeds is forecast to outpace the wider region, Northern England, and increase by 2.5% pa during the next five years. Employment is also expected to rise by 2.8%, well above the average for the North.
Ray Hogan, managing director of Oryx World Portfolio, which specialises in the purchase and sale of upmarket properties in the UK, says that, as a result, the Leeds real estate market is now coming to life with an average occupancy rate of 99% and one of the highest net returns in the UK.
“In 2015, construction began on at least three new projects in Leeds city centre, including our current development comprising of studio, one- and two-bedroom flats,” he says. “Building is due to commence on more projects this year, indicating the heightened level of economic growth.
“Limited supply in the sales and rental markets has generated healthy prices and a rise in rents,” he adds.
According to the report, typical prices of one- and two-bedroom flats in the city centre were circa £118,000 and £170,000 respectively at the end of 2015, having increased by 6.8% on average throughout the year. Likewise, rents have risen by an average of 6.4% in the same period.
Oryx World Portfolio’s Leeds development includes studio flats starting from £58,500, one-bed flats from £81,000 and two beds from £121,500, representing excellent value for money. Due for completion in 2018, the development has a potential net yield of 7%. A down payment of 30% is required, with the balance on completion.
Ray Hogan adds, “Limited supply makes Leeds the perfect investment location for guaranteed high returns as demand rises from young professionals to small families.”
“The residential outlook is expected to increase by 23% by 2020 for both sales and rental markets,” he adds.
For more information on the Leeds property market and Oryx World Portfolio’s exciting new developments in the city, please call on +971 (0) 4 446 2000. With a dedicated team of real estate professionals, the company offers a full-service brokerage, specialising in residential property in the UK, US, UAE and Spain.