The average flat could cost £36m by 2050, if its predictions of 9% a year growth in prices become reality, according to projections by the biggest investors in prime property.
London Central Portfolio has launched a £100m fund to buy one and two-bed apartments in London’s most exclusive districts.
At a 9% growth rate, the average £1.5m flat will fetch £6.3m by 2030 and £36m by 2050. LCP, which has invested about £600m in London property, will earn even more about 14% a year over the next 5 years.
The Crimea crisis would not halt and prevent the rise in London property, said Naomi Heaton, LCP’s chief executive.
The Labour party said it will stop new developments being sold overseas before local people have a chance to buy, amid widespread concern that the capital is being emptied out by overseas property speculators, which in turn pushes up prices further out in the city and the south-east.