LONDON (Reuters) – Property prices in some central London hotspots are set to more than double by 2016, driven up by a mix of factors including volatile financial markets and major new transport projects such as Crossrail, according to a report from estate agency Knight Frank.
Domestic and overseas buyers have flocked to the London residential market in recent years as they look for a safe place to park their money.
“It’s really seen as safe haven for global money. We ran some figures showing how prime property is doing in terms of asset classes … it beat the FTSE 100 tracker over the last 10 years by quite a long margin,” said Grainne Gilmore, Knight Frank’s head of UK residential research.
“It certainly gives gold a run for its money,” she added.
Meanwhile the Crossrail development, Europe’s largest infrastructure project, will link Heathrow west of London to the east of the city through huge new tunnels to be run under the city.
“Crossrail is a massive theme going through this … it’s going to change a lot of things. If you live in Barbican or Farringdon (adjacent to the City financial district) you’re going to be able to get to directly to three airports within minutes,” she said.