Middle East Interest in British Real Estate Market Buoyant, Fuelled by Weakened Pound
UK real estate brokers are preparing to take advantage of a surge of interest in British property at Cityscape Global this year, with Brexit providing greatly reduced prices for US dollar pegged investors from the UAE, Saudi Arabia, Oman and Bahrain.
Niccolo Barattieri, CEO of Northacre, a UK-based real estate developer, said: “Further to the European referendum and the subsequent slump in the Sterling currency, residential property in Britain is currently providing up to 30% discount over the last three years for USD-pegged investors.
“As a consequence there has been a surge of interest and activity from dollar-backed investors, particularly from the GCC and Asia.”
Organisations such as Northacre, Copperstones and Knight Knox, another British real estate companies boasting a diverse property portfolio, will be offering advice on entering the British market as well as showcasing their latest projects during Cityscape Global, taking place from Monday 11 September to Wednesday 13 September at Dubai World Trade Centre.
While the weak British pound has had a negative impact on many people residing in the UK, investors from countries with currencies tied to the US dollar, including the UAE, Saudi Arabia and Bahrain, have shown healthy signs of interest driven by lower costs and market savvy intelligence.
Andy Phillips, Commercial Director for Knight Knox said: “This is a particularly good time for foreign investors to enter the UK buy-to-let market as the current depreciation of the pound means that UK property is essentially being sold at a steep discount.
“Approximately 30% of our current business involves Middle Eastern buyers which is a good indicator of the health of the UK property market and its appeal to foreign investors.”
More than a year on from the UK’s decision to leave the European Union, political uncertainty and a weakened Sterling have been key factors in the decision making process for global investors, driving demand for a more stable investment choice.
Barattieri added: “Whilst the knee-jerk shocks of 2016 in the UK seem to have mostly settled, investors remain cautious of economic and political risk. As such, buyers are looking ever more for wealth preservation and asset diversification, and residential property looks set to become even more of a key lynchpin through 2017 and 2018.”
Reinforcing the message that property is a smart long-term investment choice, Phillips said: “In such turbulent times, no one can truly make accurate long term predictions. However, as always in times of trouble, bricks and mortar make a sound investment. Property provides a sense of permanence which cannot be match by many other investments.”
Northacre and Knight Knox are among many international investors exhibiting at this year’s Cityscape Global. Participation has been confirmed by countries including Egypt, Pakistan and Turkey, with a range of diverse projects set to be showcased during the three-day property event.
Cityscape Global 2017 returns with support from Foundation Partners: Dubai Properties, Nakheel PJSC; Platinum Sponsors: Al Marjan Island, Binghatti Developers, Union Properties PJSC; Gold Sponsor: Tamleek Real Estate Registration Trustee; Silver Sponsor: Maryapi Real Estate Development; Project Marketing Sponsor: Aqua Properties, and Strategic Partner: Dubai Land Department.
Cityscape Global is co-located with Building Healthcare, Innovation and Design Show, the regional business platform for build, construction, and design and innovation of healthcare facilities. For more information about Cityscape Global visit: www.cityscapeglobal.com.