The sector has grown 44% more in the last ten years, while the most famous cryptocurrency returned almost 5,000%.
The real estate market Londoner has proven to be one of the best bets to invest in the last 10 years, with a profitability greater than 44%according to a new market analysis carried out by British real estate agency Foxtons.
The real estate agency has analyzed the performance of the residential real estate market in the British capital compared to nine other popular investment options including Bitcoin and the FTSE 100. According to the study, only two investment assets have offered superior returns in the last decade.
It's hard to beat Bitcoin's impressive 4,963% return over that 10-year period. The cryptocurrency had an average value of $840.3 in December 2013, which increased to $42,544 in the period until December 2023.
Meanwhile, gold – the safe haven investment – occupies second place, with a return of 66.8% in the same period, with a price of about $1,223.9 back in 2013 and reaching $2,042 last December.
The price of silver has increased a more moderate 22.9%, while investing in the FSTE 100 index (which tracks the share prices of the 100 largest companies on the London Stock Exchange) would have obtained an even lower return, of 15.7%. The worst choice turned out to be WTI oil (-26.3%), Brent oil (-30.2%) and natural gas (-41.5%).
“The investment landscape is constantly changing and, while some traditional vehicles have experienced a sharp loss of value in the last decade, such as natural gas, other emerging markets, such as cryptocurrencies, have experienced a period of boom, albeit with a higher degree of volatility” says Guy Gittins, CEO of Foxtons.
Is brick overrated in London?
The average value of a home in London in December 2013 was 352,028 pounds (411,237 euros). Currently, the average price is 508,037 pounds (593,486 euros), which represents an increase of more than 156,000 pounds (182,238 euros), according to the study, which has taken into account data from the Property Registry.
“The London market is, without a doubt, the peak of real estate investment in the UK and, although last year was difficult, the value of a London home has increased considerably in the last decade,” says Gittins. The British estate agency expects the capital's market to attract a high level of investment from of investors, since “it has taken a 180 degree turn in 2024”.
