If you own an apartment or are thinking about buying one either to live in or as an investment, you’ll be pleased to learn that apartments are one of the most lucrative types of property to purchase, with prices rising at a faster rate than any other property.
A new report by Halifax shows the average apartment in Britain has increased in value by as much as £1,251 per month over the past five years. During this period, the average cost of an apartment has risen by £75,074. The data reveals that between 2013 and 2018, apartments have experienced a 48% rise in value. This compares to terraced houses, which have increased by 42% in the same period, and the value of detached homes rising at a more moderate 27%.
The tendency for apartments to be in cities and larger towns, close to jobs, infrastructure and amenities, is cited as a reason for their lucrative rise in value.
Talking of the increasing value of apartments, Jonathan Stephens, MD of Surrenden Invest said:
“The sustained level of demand for apartments in regional city centres has shown solid credentials, even in the wake of the Brexit referendum.”
“With dynamic local economies and solid labour markets, regional cities are an enticing prospect for those looking to make capital gains, whether as owner-occupiers or investors.”
Despite the continued rise in the value of apartments, this type of property accounts for just 15% of all property sales in the UK. However, due to the price of apartments rising at a faster rate than other types of property, it is believed apartments will be increasingly attractive to investors.
If you are wanting to invest in apartment accommodation or any type of property, a property auction can be one of the best ways to find your ideal property investment. Check out the current lots for Auction House London’s next property auction in London, or sign up to our mailing list to keep up-to-date on our news and forthcoming auctions.