The United Kingdom (UK) property market is now witnessing huge interest from Middle East buyers who are looking to take advantage of the current scenario where prices have been softening and the pound is weaker than before on account of Brexit. Britain is planning to depart from the EU (European Union) in March next year and people purchasing currently in currencies linked to the dollar are gaining massive discounts whenever they purchase property in the UK on account of better exchange rates.
Middle Eastern buyers have always been attracted to properties in central London in most cases as per experts and they are majorly buyers who pay in dollars. The pound is weaker and property supply is also limited. Even if there are no flip-flops on Brexit, things will continue unabated since the London real estate market will always remain attractive for global investors.
Several London developers have also been foraying into Middle Eastern markets to scout buyers for their properties in the city. Over the last 5 years or so, several developers have seen 10-12% of their customers come from the Middle Eastern region. London continues to remain one of the most globally popular prime realty markets and current price corrections and exchange rates facilitate more investments from Middle Eastern buyers.
In case of a future no-deal Brexit, there would be a transition period plagued by both political and economic anxieties in the United Kingdom and this may lead to property prices coming down even further. This may however make them more attractive to investors and prices may start rising again. There are several other areas where economic growth is pronounced and there have been key transport and infrastructural upgrades that will keep the realty market going in many areas in and around London and other parts of the UK. Prime central London has seen realty values come down by roughly 4% this year which makes it more enticing for Middle Eastern buyers.
As per reports, there has been a sharp rise in the number of buyers queuing up to register prime central London properties over the last few months. Home prices in the UK have increased by approximately 3.5% overall over the last year as per reports although prices in London have come down overall by 0.7%. Yet, prices have increased handsomely in areas like Coventry and Leicester backed by burgeoning demand. Reports state that 15 out of 33 boroughs in London are witnessing price growth due to renewed demand from buyers. Additionally, the realty market will benefit from the estimated 11.5% growth in population for London over the next decade. The city will require approximately 66, 000 new housing units annually which will keep the market going on account of the demand-supply mismatch.