With the pound still down ~10% and Brexit concerns having no end in sight, this represents a perfect time for Gulf investors to invest in London prime real estate.
If shewed Gulf investors look to buy properties using Dollars they could see significant savings, on a £10-million property, there could be as much as £1.8-million of dollar savings. Chelsea and Belgravia are obvious investment priorities and thanks to Brexit, investors previously priced out may get the chance to buy in much sought after areas.
“Brexit has certainly not weakened the Gulf investors’ interest in London — it’s right up there as a choice when it comes to an overseas destination to commit $1 million and more on property.” Moreover, with Article 50 still far from being signed and Europe working hard to ensure UK does not get the same benefits, prices may even fall further.
Investors should note that the mortgage and credit data printed today came in slightly lower than the consensus – 60.91K in July versus the 61.9K expected. This represents an 18 month low. However, when you factor in the Bank of England’s (BoEs) rate cuts in August the levels do not seem too bad. Jobs report and retail sales both point to positive economic data for the black sheep ex EU country. All signs pointing to potential upswings in the coming months, highlighting a good time to buy is now.
At dealmakerz we think if GBPUSD were to fall to 1.28, this could be a strong signal that GBP has hit the floor. This would be a perfect indicator to snap up the properties in Belgravia.
Let’s not forget that Property investors in London have seen 70% increase in the last seven years. “What Brexit did was to amplify a slowdown that was already there in London property. It’s highly unlikely that the 100,000-odd people in the city’s banking and financial services sector will overnight shift to Dublin, Frankfurt or another European city and London loses its crown as the capital of the financial industry,”