Returns on central London residential property investment for the year 2000 were the second worst in the last five years – but the sector is still going strong, according to IPD and Cluttons’ research.
Residential returns for 2000 hit their lowest rate in the past five years apart. The exception was 1998, when returns plummeted to 12.7%.
However at 17.9%, last year still represented an impressive lead over other property sectors which averaged 10.4%.
But despite slight troughs, London residential property has outperformed all other sectors over the past five years, producing an average return of 19% pa.
The index reports on 396 properties in inner London, worth £917m.
The fifth annual London report by Cluttons and IPD coincides with IPD’s launch of a new national residential property index and benchmarking service, which will allow comparison between the London market and the rest of the UK, as well as nationally between sectors.
EGi News 07/07/01
