SINGAPORE (EDGEPROP) - According to research by UK developer Barratt London and property website Rightmove, select areas in Greater London where active regeneration is taking place are underappreciated hotspots that could offer great potential for both first-time buyers and investors.

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Dubbed “Cinderella” areas in reference to the transformations that they are expected to undergo, Barratt London says the locations offer a lower initial purchase price compared to more well-known neighbourhoods, in addition to strong potential for substantial capital gains.

The developer lists Acton, East Ham, Harrow, Tooting, Hounslow, Hayes, Wembley and Hendon as its top Cinderella neighbourhoods.

Stuart Leslie, international sales and marketing director at Barratt London, says that prices are expected to rise in such neighbourhoods over the next decade. “London suburbs are flourishing, with people willing to move further away from the city centre in search of more space and improved quality of life,” he explains.

To that end, Leslie notes that properties in these areas offer a good opportunity for buyers in Asia to reap long-term capital gains, especially in light of current market conditions. “Whilst the wider UK market has seen massive house price inflation of well over 10% in the last year, the capital saw the lowest regional price growth over the past 12 months, leaving a huge opportunity for buyers in Asia to take early advantage of expected house price growth,” he says.

James Puddle, founder and CEO of Singapore-headquartered One Global Group, one of Barratt London’s selling agents, believes the London property market is poised for a comeback.

"London has lagged behind in the property boom of 2021, as buyers and renters looked out of the capital and city centres. However, we have already seen the trend reversing and more people coming back to the capital. We expect London to be one of the top performers in 2022,” he says.

He also points out that house prices in London offer an opportunity for Asian investors where cooling measures have made local property investments more difficult. “For example, Singapore buyers are able to purchase a London property with less cash outlay than just the stamp duty they would have to pay on a second or third property on an average condo in Singapore,” he says. (Discover insightful data of any Singapore condominium with our condo directory)