The City of London is arguably the world’s financial capital with a number of major investment banks, funds, and family offices located in the area.
In this article, we look at 7 reasons why you may want to look at investing in property in the City of London.
A Transport Hub:
There are a large number of stations which serve the City of London including London Terminus Stations such as Cannon Street Station, Liverpool Street Station, and Fenchurch Street Station which provide access to areas outside London. In addition, Underground Stations such as Bank & Monument, Liverpool Street, Aldgate, Barbican, and Tower Hill provides access to London Underground lines including the Hammersmith and City Line, Circle Line, Metropolitan Line, Central Line, District Line, and Northern Line as well as access to the Docklands Light Railway and London Overground. Liverpool Street will also benefit from the new Elizabeth Line (Crossrail) once this is completed. All these rail connections make the City of London an ideal place for an investment as the excellent amenities make it easy to commute to – one of the many reasons why City of London investments are so sought after.
The Finance Industry:
With some of the largest banks and financial institutions in the world basing their headquarters in the City of London you can be certain that it is an area with a lot of future growth. Organisations based in the City of London include the Standard Chartered Bank, Lloyds, the Bank of England, and the London Stock Exchange. This economic certainty provided by the large financial institutions based in the area means that the City of London is an excellent location for property investment – someone will always be looking to let space in the City!
The Tourism Industry:
Another major industry which any potential investors should be aware of is the tourism industry. With the wide array of markets and skyscrapers a major draw for tourists, there are also a number of other attractions in the City of London which make it a popular tourist destination. These include St Paul’s Cathedral, Tower Bridge, The Tower of London, and the Museum of London. In addition, Shakespeare’s Globe Theatre, and the Tate Modern are a short walking distance away.
Increasing Rents and Property Values:
One of the most important factors when considering any property investment is the return which you are likely to get on the money you put in. This is one area where the City of London is especially strong with rising rents and increased property values over the course of the last few years. This is despite Brexit uncertainty which has affected investment in the UK property market. This tells us that the City of London investment market is its own unique submarket with many investors and office occupiers still seeing the City of London as a safe location whether they are looking for office space, a property with redevelopment potential, or a place to park their money.
There are a number of popular markets which are located within the City of London which make the area a hub for foodies all over London. Smithfield Market is the largest wholesale meat market in the UK and amongst the largest of its kind in Europe, having had a livestock market on the current site for over 800 years. Leadenhall Market is another famous City of London market which dates back to the 14th Century. Famous for being the filming location of Diagon Alley in the Harry Potter films, Leadenhall Market has a fantastic range of shops and stalls on the site. In addition, Old Billingsgate Market is also located in the Square Mile and is London’s most famous fresh fish market, benefitting for centuries for its location next to the River Thames.
With just under 9,000 people living within the City of London, the area is not well known for its residential population. However, the City of London is a major employment hub with current estimates predicting that between 500,000 and 1,000,000 people are employed in the area. These include people performing a variety of functions, mostly within the financial industry with a lesser focus on the legal profession on the western side of the City of London due to its proximity to the Chancery Lane and Temple areas which the Inns of Court are located.
There are a large number of famous and iconic skyscrapers which have defined the London skyline in the City of London. The unique situation which the City of London finds itself in – limited space within the Square Mile in addition to the protected views from St Paul’s Cathedral – mean that there is a wide range of innovative architecture to be found within the City of London. These include The Leadenhall Building (known colloquially as he Cheesegrater) which gets its characteristic shape due to the protected views from St Paul’s Cathedral, as well the The Gherkin and The Walkie Talkie which both curve outwards in an attempt to maximise the office space inside the skyscrapers. For more about London’s skyscrapers, you can read our article on the topic here.