Investors searching for real estate assets that will offer good returns should target "the scarce resource", one expert has claimed. Head of investment management at London Central Portfolio Hugh Best recommended seeking out properties in prime locations where there is no scope for development.
"We always say target the scarcer source, it is harder to find the property but the rewards are higher," he stated. Mr Best explained that districts in London such as Knightsbridge or Mayfair are prime examples of this, because they are part of a conservation area, with all the buildings protected. As a result, there will be no new properties coming on to the market, making those already in existence more desirable.
Earlier this month, FindaProperty.com revealed that capital value growth in the housing market has seen it outperform other investment vehicles, including stocks and instant access savings accounts. The firm noted that residential real estate prices have risen by 2.1 per cent since the beginning of the year.