London Property Market Triumphs Over Other Investments, Soaring to 44% Return in Last Decade

London property investments have yielded impressive returns of over 44% in the last decade, surpassing most other investment options such as Bitcoin, gold, and stock indices. Only Bitcoin's remarkable 4,963% yield and gold's 66.8% return have outperformed London's property market, highlighting its strong resilience and earning potential.

London Property Market Outperforms Other Investments, Yielding Over 44% Return in Past Decade

London's property market has emerged as a lucrative investment destination, delivering a remarkable yield of over 44% in the past decade, surpassing the returns generated by several other popular investment options, according to a comprehensive market analysis conducted by British estate agency Foxtons.

The analysis meticulously evaluated the performance of London's residential property market against a diverse range of nine alternative investment options, encompassing Bitcoin, gold, silver, FTSE 100, and various crude oil and natural gas investments. Notably, only two asset classes surpassed the exceptional returns realized by London property over the ten-year period under scrutiny.

Bitcoin, an emerging cryptocurrency, has exhibited an astonishing 4,963% yield, outpacing all other investments by a significant margin. Its value has escalated from an average of $840.3 in December 2013 to an impressive $42,544 in December 2023, and has continued to surge since then, reaching an all-time high exceeding $73,000 in March 2024.

Gold, traditionally perceived as a safe haven, secured the second position with a 66.8% return on investment during the same period. Its price has appreciated from around $1,223.9 in 2013 to $2,042 in December 2023.

Silver has experienced a more modest increase of 22.9%, while investments in the FTSE 100 index, which tracks the stock prices of the 100 largest companies listed on the London Stock Exchange, have yielded a comparatively lower return of 15.7%.

Conversely, certain commodities have performed poorly, with WTI Crude Oil (-26.3%), Brent Crude Oil (-30.2%), and natural gas (-41.5%) delivering negative returns.

"The investment landscape is constantly evolving, with certain traditional investments, such as natural gas, witnessing a significant decline in value over the past decade, while emerging markets like cryptocurrency have experienced a period of rapid growth, albeit with increased volatility," remarked Guy Gittins, CEO of Foxtons.

Examining the London property market in isolation, the average house price in December 2013 was £352,028 (€411,237). Today, the average price has climbed to £508,037 (€593,486), signifying an increase of over £156,000 (€182,238), as per data derived from the Land Registry.

"London's property market undoubtedly stands out as the pinnacle of UK property investment. Despite facing challenges in recent years, the value of London homes has still risen considerably over the past decade," stated Gittins.

Foxtons anticipates that the London property market will continue to attract significant investment, particularly as it enters a positive trajectory in 2024.