Emerging Prime areas in SW London continue to drive some of the best returns on investment, according to Douglas & Gordon, outstripping PCL for the third year on the bounce.
The firm’s research team has been pitting the performances of areas like Fulham, Pimlico and Putney against those of the traditional PCL enclaves, using data going all the way back to 2003. Here’s the key take-homes from 2014…
- The Douglas & Gordon Emerging Prime Index rose by 5.39% in 2014.
- This number compares with a return of 1.93% for D&G’s Prime Market Index in 2014.
- 2014 was the third year in a row that the Emerging Prime Index outperformed the Prime Index.
- East Putney delivered the strongest return (18.57%) with Pimlico a close second (14.16%).
- Two of the strongest markets over the past 11 years, Battersea Park and Battersea, declined in 2014 by -2.02% and -1.84% respectively.
- Flats overall performed better than houses.
Ed Mead, Executive Director at Douglas & Gordon: “Emerging Prime areas in South West London continue to drive some of the best returns on investment, outstripping Prime Central London for the third year in a row.
“For investors, one bedroom flats are set to be the most lucrative; the good yields, solid rental income and the fact that one person and couple households are expected to be the biggest drivers of household growth in London, mean the outlook is strong for returns on investment.
“Despite a decline in Battersea Park and Battersea in this quarter, we still think these two areas provide some of the best investment opportunities in the long term, thanks to the infrastructure and transport links that are lined up.”