MARKET UPDATE
The Best Areas To Invest In London and Surrounding Areas in 2025
May 7, 2025 • Author: George Radford
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Investing in UK property remains a top strategy for overseas investors looking for stability, capital growth, and strong rental returns. London—and its surrounding hotspots—continues to outperform many global cities, offering a safe, appreciating asset in a volatile world.
Read on to see where the best places to invest in London and surrounding areas are and which places should be at the top of your investment list for 2025 and beyond.
1
Canary Wharf – London's Financial Powerhouse
Why invest?
Canary Wharf has evolved into one of the most important financial centres in the world, rivalling Wall Street and the current US approach to tariffs and trade is only heightening London’s appeal as the world’s premier financial powerhouse further, arguably giving it the edge over New York. More than half of the world’s top 50 banks have a significant presence in the district and it remains the European headquarters for JPMorgan Chase, Citigroup, Barclays, Credit Suisse, and HSBC.
The area attracts high-earning tenants from banking, legal, and tech sectors. Thanks to the Elizabeth Line (Crossrail), travel time to the West End has been slashed to just 13 minutes, boosting rental appeal even further.
property outlook
Rental growth forecast: 21% over the next 5 years (JLL, 2024)
Capital growth forecast: 18.3% by 2029 (Savills, 2024)
Average rental yields in Canary Wharf are currently around 5–5.5%, one of the highest in London.
INVESTOR TIP
Look for modern developments offering concierge services, gyms, and waterfront views to attract corporate tenants.
2
woolwich - LONDON HIDDEN GEM
Why invest?
Long considered a hidden gem, Woolwich is fast emerging as one of London’s most exciting growth areas. The arrival of the Elizabeth Line at Woolwich station has slashed journey times to Canary Wharf, the City, and Heathrow, dramatically improving its appeal to commuters. Major regeneration schemes—including the Royal Arsenal Riverside development and the town centre masterplan—are transforming the area’s image and infrastructure.
Compared to nearby Greenwich and Canary Wharf, Woolwich offers far more accessible entry prices while benefiting from riverside living, excellent transport, and a growing cultural and retail scene.
This convergence of affordability, connectivity, and regeneration is driving strong interest from buyers and renters alike—positioning early investors for solid capital gains.
property outlook
Average price increase: Property prices in Woolwich are forecast to grow by 22–28% over the next 5–8 years (JLL), fuelled by Crossrail-led demand and large-scale redevelopment.
Rental yields: Up to 5.5% for new builds
Rental demand in Woolwich is robust, with a notable increase in young professionals and key workers seeking well-connected, affordable homes
INVESTOR TIP
Look for units within Royal Arsenal Riverside or walking distance to Woolwich station for maximum capital and rental upside.
3
croydon - largest urban regeneration programs
Why invest?
Croydon is undergoing one of the largest urban regeneration programs in the UK, with over £5.25 billion invested in infrastructure, housing, retail, and public spaces. Positioned as South London's de facto business hub, Croydon has excellent rail links to both Central London and Gatwick Airport, making it a popular choice for commuters.
Compared to more central London locations, Croydon offers considerably lower entry prices, yet it continues to attract new business, cultural investment, and a growing professional population. The recently approved plans for Westfield’s retail development also reinforce long-term confidence in the area’s future.
This mix of regeneration momentum and affordability creates a compelling opportunity for property investors seeking high yields and strong capital appreciation.
property outlook
Average price increase: Analysts predict Croydon could see price growth of 18–24% over the next 5–7 years (Savills), driven by regeneration and its commuter town status.
Rental yields: Up to 6.0% for new builds.
Rental demand is surging as more young professionals move to Croydon for affordability and lifestyle access.
INVESTOR TIP
Target new developments near East Croydon station, where tenant demand is highest and transport links are strongest.
4
Esher & Claygate – A Celebrity Favourite with Strong Rental Demand
Why invest?
Esher and Claygate’s leafy avenues, excellent schooling, and swift connections to London Waterloo make it an enduring favourite with affluent commuters and celebrities. The rental market for executive homes is very robust, supported by demand from corporate relocations. During uncertain times, luxury suburban markets like Cobham, Esher and Claygate tend to outperform city-centre apartments, as families prioritise space, gardens, and lifestyle quality.
property outlook
Average house price: £1.25 million. Prime suburban areas like Esher are forecast to outperform central London growth over the next decade, with predicted house price growth of 20–25%.
Rental growth forecast: 19% by 2029 (JLL)
Vacancy rates: Among the lowest in Surrey
INVESTOR TIP
Modern, energy-efficient homes are increasingly popular with high-end tenants.
5
cobham - Luxury and International Appeal
Why invest?
Cobham's reputation as an international hub for wealthy expatriates, especially Americans and Middle Eastern families, ensures consistently strong rental demand.
It’s located in the prestigious "Surrey Golden Triangle" along with Weybridge and Esher. During economic uncertainty or market corrections, prime areas like Cobham traditionally act as "safe haven" markets. Wealthy domestic and overseas buyers continue to target these towns because of their proven resilience, strong fundamentals, and prestige.
property outlook
Average house price: £1.4 million (Zoopla, 2025)
Predicted capital growth: 17% by 2030 (Knight Frank)
Luxury rental demand: Increased by 22% year-on-year (Savills)
INVESTOR TIP
Detached, gated family homes near international schools are highly sought after and luxury apartments for downsizers.
6
Brighton – A Seaside City with Urban Energy
Why invest?
Although not technically part of London, Brighton is often considered London’s beach escape—and it has become an investment hotspot in its own right. With two universities, a thriving tech and creative scene (it’s known as ‘Silicon Beach’) and excellent transport links to London (just over an hour by train), Brighton offers a unique lifestyle that’s increasingly in demand.
property outlook
Brighton property prices have risen by over 10% in the past 12 months (Rightmove, 2024) and are forecast to grow by a further 20% over the next 10 years (2030, Savills)
Rental yields for small apartments and student lets range from 5–6%, driven by university demand and professional tenants.
Rental growth forecast: 22% over next 5 years (HomeLet, 2024)
INVESTOR TIP
Invest in well-located apartments near the seafront or mainline train stations to attract students and London commuters.
Best areas to invest in London: Final Thoughts
The next decade is shaping up to be a rewarding one for savvy property investors and these are five top UK locations overseas investors can't afford to miss in 2025. Whether you're targeting professional tenants in Canary Wharf, young families in Acton, affluent expats in Cobham, high-net-worth individuals in Esher, or the vibrant rental market in Brighton, these areas are primed for capital growth, rental yield and long-term value. Early investment in these hotspots could lead to impressive returns by 2030.
Where to invest in London: Let our Property Experts Guide You
It’s important to work with local experts and agents who have an on-the-ground-presence in the UK, while prices and competition are still favourable. Based in the UK and with offices across the globe, RPA Group has been advising overseas property investors for over two decades, guiding our clients to make the best decision for them. We offer exclusive investment opportunities in London, Manchester and Birmingham along with other high performing areas of the UK.
Our full suite of services enables us to provide our clients with every conceivable facility they need on where to invest in London or elsewhere in UK property market investment: Due diligence, conveyancing, mortgage and tax advice and lettings and property management. What’s more, we provide monthly market updates and regular articles on the UK property market so please do subscribe to our mailing list for the most up to date appraisals of the market – and access to our latest investment opportunities. Explore our London & other UK investments developments
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About the author
George is the co-founder of RPA Group and Managing Director of the business in the UK and Africa. A qualified Chartered Surveyor (MRICS) with almost 20 years of property investment experience, George has helped his clients to successfully grow and strengthen residential property portfolios over multiple markets and territories.
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