There is an array of opportunities for property investors interested in investing in city centres. There are many locations and asset types available. Options can include residential, commercial, retail and industrial property, as well as traditional and less traditional property investments such as hotels and car parks.
Why invest in property located in city centres?
Higher populations therefore higher demand
There are more businesses, employers and educational institutions located within city centres. The world's cities are already highly populated and are expected to grow, experts predict approximately 70% of the world's population will be living in cities by 2050. As cities grow in population and more jobs are created there is an increased demand for housing. Purchasing property in a city centre more than likely means owners will have higher occupancy levels. As well as residential demand cultural cities will attract large numbers of holiday makers for short term lets.
Rental property located within a city centre will more than likely demand a higher rent, although the original capital required by investors is also likely to be higher.
Beneficial transport and infrastructure
The majority of city centres have excellent transport and communications enabling people to come and go easily.
People are drawn to living in city centres because there are more amenities on their doorstep and infrastructure is generally better.
Cities undergoing urban regeneration
Improving city centres are always a beneficial location for property investment; before regeneration property prices and rental rates will be lower and will be expected to rise following regeneration improvements. Government investment and policies for continuous improvements is typically directed towards city centres.
City centres are undergoing urbanisation increasing the area of the city and the population. Expanding cities have an impact on businesses, communities and economies.
City centres are economically sustainable and important to the global economy - investors should always ensure there is political and economic stability in the country in which they wish to invest in property.
- Wednesday 16 March 2011