Why London’s real estate market remains one of the most liquid in the world
London’s property market has long been seen as a safe bet for investors. The reason? It’s all about liquidity. Whether you’re a high-net-worth individual, an institutional investor, or a developer, the capital offers opportunities that are hard to ignore. Property in London consistently attracts interest due to its combination of stability, demand, and accessibility.
Data from BNP Paribas’ real estate division revealed that in the first quarter of 2024, US-based investors substantially increased their activity, investing £1.9 billion in London commercial properties. This was a sixfold rise from the previous year and the highest level since late 2015. Such a dramatic increase underscores the enduring appeal of London’s market and highlights its resilience, even in shifting economic conditions. Investors are clearly seizing opportunities where they see long-term value, reinforcing London’s status as a global investment hub.
One of the key reasons for London consistently attracting international investment is the UK’s robust legal framework, which ensures the security and stability of property lending in London. Ownership rights are clearly defined, and the transaction process remains transparent compared to many other global cities. Unlike some markets where political instability can undermine investor confidence, the UK remains a go-to destination for those seeking consistency. International buyers, in particular, are drawn to the reliability that comes with investing here. With a steady stream of foreign capital entering the market, liquidity remains high, ensuring that property assets retain strong demand.
The supply-demand imbalance is another factor sustaining London’s property market. There simply aren’t enough homes or commercial spaces to meet demand. Even during economic downturns, values hold firm because there is always a buyer ready to step in. For lenders, this provides reassurance that assets held as security retain strong underlying value. HMRC’s UK Property Transactions Statistics reported 93,000 residential property transactions in November 2024 alone, marking a 12.9% increase from the previous year. Even though many brokers may consider the market to be subdued, on a global scale, this level of activity highlights sustained demand within the sector. Investors remain confident that, despite broader economic fluctuations, London’s property market continues to demonstrate resilience and growth potential.
For international investors, currency fluctuations can also often work in their favour. A weaker pound allows overseas buyers to acquire assets at a relative discount, driving up transaction volumes. This currency-driven incentive has historically contributed to the city’s continued appeal, particularly for buyers from the US and Asia. The ability to capitalise on favourable exchange rates can significantly enhance investment returns, making London an even more attractive proposition.
When it comes to financing a property investment in London, bridging can provide investors with a short-term funding solution to access the market and build a track record before potentially refinancing onto a longer-term product. Moreover, at London Credit, we understand the market and recognise the barriers that overseas investors can face, and we know how to cut through them.
With its unique blend of stability, demand, and international appeal, the capital continues to be one of the most liquid real estate markets in the world. Investors seeking a combination of security and opportunity continue to turn to London.
Constantinos Savvides, Head of Underwriting at London Credit
