Property investment stats for Royal Docks, East London

• Investors can benefit from strong rental yields, with the area average at 6.0% and the top postcode district achieving 6.9%.
• The large private rented sector (98th percentile) and high concentration of young adults and professionals create sustained demand for rental properties.
• The area’s three-year capital growth of 7.5% suggests steady long-term value, while the median achieved price is only £5,000 (the typical achieved discount) below asking, indicating sellers are getting close to their expectations.

• Affordability is stretched, with a price-to-income ratio of 7.4 and a rent-to-income ratio of 37.6%, which may limit the pool of potential buyers and renters.
• The unemployment rate sits in the 90th percentile nationally, which could pose risks to rental stability and long-term growth.
• The area has a very low proportion of owner-occupiers (3rd percentile), which may make the market more volatile and sensitive to changes in the rental sector.

Royal Docks is likely to remain attractive to investors seeking rental income, given the high demand from young professionals and the strong private rented sector. With a median asking rent for a two-bedroom flat at £2,450 and a three-bedroom house at £2,290, rental values are robust for London standards.

The market is active, with properties typically selling in 54 days and a median sale price for a three-bedroom house at £602,500. While affordability pressures and a high unemployment rate pose challenges, the area’s youthful demographic and steady capital growth of 2.2% over the past year point to ongoing resilience. Investors should expect continued demand from renters, but should keep an eye on economic factors that could impact tenant stability. Overall, Royal Docks offers a balanced mix of opportunity and risk for property investors focused on the London rental market.