REVEALED: Where and where not to invest in property in 2012
HOTSPOT - London, UK.
With strong growth forecasts of 5 percent for 2012 and 23 percent over the next 4 years, prime London property continues to attract foreign investors. Sales volumes increased 85 percent over the last year, as a result of 11 percent price growth and rental demand remaining strong. Rental forecasts from Savills indicate growth of four percent this year in Greater London, but the strongest growth is expected in smaller properties that are less centrally located.
According to consultants Jones Lang LaSalle, smaller flats saw rental growth of 17.1 percent during 2011. Demand will continue to be highest here, as tenants seek better affordability during 2012.