A surge in interest for London-based properties from Middle East investors has been observed after a drop in the value of the pound, reported Chestertons, a leading international real estate service firm.
Over a 10 percent increase in enquiries was observed for London-based properties, properties which would have cost $5.23 million six months are now listed for $4.32 million, leading to savings of over $1 million.
Middle East investors are seemingly taking advantage of the favourable exchange rate, attributed to the dip in the value of sterling.
According to Dennis Chan, global head of sales at the company’s Global New Homes division, properties in London are attracting 10 percent more enquiries as compared to the same period last year, mostly from investors based in the Middle East who can get more value from their money.
“London has long been a popular property investment opportunity for Middle East buyers, and having experienced a spike in interest last year following the easing of pandemic-related travel restrictions, demand has risen to another level as a result of the weakening of the pound,” said Chan.
“Cash-rich investors are maximising their savings by focusing on London’s more expensive neighbourhoods such as Knightsbridge, Mayfair and South Kensington, where they are enjoying an incredible increase in value for money,” he added.
“This can best be illustrated by looking at a property which six months ago was on the market for £4 million and would have cost an investor based in the Middle East around $5.23million. Compare this with today and the current exchange rate, and the same property costs around $4.32million, which is a saving of around $1 million,” explained Chan.
Statistics show that the top five source markets include UAE, Saudi Arabia, Kuwait, Bahrain and Egypt. Properties under $1.1 million seemingly being the most sought after
“Investor confidence in London’s real estate is long established. Not only does this mature market offer capital appreciation and secure rental returns, but the industry is also monitored and policed by various bodies, bringing peace of mind to those looking to part with their money, particularly if for the first time,” said Chan.
A further uplift in enquiries is expected of above 10 percent in the coming months as the market continues to be buoyed by both the favourable exchange rates and the recent announcement of stamp duty relief.
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