Do New Builds Go Up in Value? Understanding Property Appreciation in London

Investing in a new build property in London can be exciting, but one of the most common questions buyers ask is: “Do new builds go up in value?” The answer depends on several factors including location, developer reputation, market trends, and property type. Understanding these elements is key to making an informed investment decision.

Why New Builds Can Appreciate

1. Modern Design and Energy Efficiency
New build properties are designed to modern standards, often including energy-efficient features, smart home technology, and high-quality finishes. These aspects appeal to buyers and renters alike, supporting higher resale values and rental income.

2. Attractive Payment Options
Developers often offer flexible payment plans, including staggered deposits during construction. This can make purchasing a new build more accessible while locking in a price before completion, potentially benefiting from market appreciation.

3. Location and Infrastructure
Properties in areas with strong transport links, schools, and planned regeneration projects tend to appreciate faster. For example, new builds in zones with upcoming Crossrail stations or regeneration schemes often see higher demand.

4. Reduced Maintenance Costs
Unlike older properties, new builds typically require minimal maintenance initially. Buyers are attracted to move-in-ready homes without the risk of immediate repair costs, which can increase market desirability and value.

Market Performance: New Builds vs. Resale Properties

According to recent data for London in 2025:

Average price growth for new builds: 4–6% per year in prime and emerging areas.
Average price growth for resale properties: 3–5% per year depending on location and condition.

These figures suggest that, while new builds may appreciate slightly faster in certain areas, resale properties can also offer strong returns, especially if located in established, high-demand neighbourhoods.

Factors Affecting New Build Appreciation

1. Developer Reputation
Choosing a reputable developer ensures quality construction and compliance with standards, reducing the risk of depreciation due to defects or poor design.

2. Market Conditions
Economic factors such as interest rates, housing demand, and government policies can affect property values. London’s prime central locations generally maintain long-term resilience despite market fluctuations.

3. Lease Length
For leasehold properties, shorter lease terms can impact value over time. Buyers should check the lease duration and associated costs to avoid future depreciation.

4. Supply and Demand
Areas with limited housing supply but increasing demand are likely to see faster appreciation. Regeneration zones, transport improvements, and emerging neighbourhoods often provide better growth potential.

Tips for Maximising New Build Investment

Research Location Thoroughly: Look for areas with regeneration, transport upgrades, and strong amenities.
Evaluate Developer Track Record: High-quality developers tend to deliver properties that retain and increase in value.
Consider Property Type: Apartments in prime areas often perform differently from townhouses or detached homes.
Understand Market Cycles: Buying during market growth phases can enhance appreciation potential.

Conclusion

New build properties in London can go up in value, particularly when located in prime or up-and-coming areas and developed by reputable builders. While they may not always outperform resale homes, their modern features, lower maintenance, and appealing design make them a compelling choice for both homeowners and investors. By focusing on location, quality, and market trends, buyers can position themselves for strong long-term returns in one of the world’s most competitive property markets.

NEHA RAWATNovember 17, 2025