UK Property Market continues to appeal despite brexit uncertainty
With many questions surrounding brexit yet to be resolved, UK Property Investment companies continue to be positive about the outlook with a strong focus on the UAE market.
The UK market has been a hugely popular investment for UAE investors, and the uncertainty around Brexit raises questions for both current and prospective investors.
Key figures in the market state that UAE based investors retain a positive outlook on the UK property market with demand remaining unaffected by brexit, with many investors exploring how to expand their UK property portfolios due to the UK’s track record of producing high quality properties.
Regional cities such as Manchester are proving popular with heavy investment as the Government focuses on driving the economy through funding into innovation, culture and transport.
In spite of Brexit, London maintains it’s position as the global centre of wealth providing a safe haven for investment, world class education and an unparalleled lifestyle. While international students flock to London for an excellent standard of University and high school education, more than 500 of the largest companies in Europe are based here and the number of HNW indiviuals living in London continues to rise.
JLL forecast that property values in central London will grow at more than 15% over the next 5 years. JLL’s residential research director Nick Whitten praises it’s appeal, “London remains a safe haven for international capital with strong factors continuing to underpin it as a solid investment proposition for both domestic and international purchasers. A systemic failure to align housing supply with demand has led to more than 30 years of strong house price growth, exceeding many other asset classes. Meanwhile, Sterling is currently undervalued, but is expected to appreciate against the US dollar by up to 20 per cent over the next three years.”
The sterling’s weakness has created an opportunity that global UNHWI’s have been keen to take advantage of, leading to a recent upturn in sales.
Niccolò Barattieri di San Pietro, CEO of ultra-prime developer Northacre, said, “Despite the UK’s expected imminent departure from the EU, we can confirm it certainly hasn’t put off foreign investors. There is increasing speculation that post Brexit the flood gates will open — those that were taking a ‘wait-and-see approach’ will release funds and London will see a significant influx of capital. We are wholeheartedly betting on Britain”