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Classic car or prime property for investment?

Classic car or prime property?

Which will give you the best return on your investment – a classic car or prime London property? A painting or a piece of farmland?  Savills Research analyses the performance of the top investment assets over the 25 years from December 1988.

Prime London property

Over this 25-year period, prime central London (PCL) house prices recorded the biggest increase across all asset classes, with values rising by 523.1 per cent. Growth has been strong since the credit crunch, resulting in property values in the capital outperforming all other areas of the UK.

Classic cars

In the six years from September 2007, the real winner for investors has been classic cars, recording a staggering growth of 134.9 per cent. These prices have not fallen since March 2006, leading increasing numbers of investors to choose classic cars over more conventional assets, such as property.

Farmland

Farmland has always been considered a safe investment. Prices have historically performed well during economic downturns and this recession was no exception – average values have not fallen since 2003 and have increased on average by 105.2 per cent in the six years since September 2007.

Art 100

Over the past 25 years, the Art 100 index has recorded 
growth of 200 per cent (December 1988-December 2013), which compares with the average UK house price increase of 205 per cent.

Looking forward

As the search for safe stores of wealth continues, a variety of asset classes 
will benefit. Investment credentials are only part of the picture; the amenity enjoyed by the owners of art and property is far less tangible but potentially more valuable.

25 year capital value growth for investment assets

Further information

Savills Research provides advice and analysis to clients across the UK.

 

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