With the pound down, now may be the time to buy in London

Average property prices in London have remained flat over the year, while the pound has fallen 11 percent value to the dirham
With the pound down, now may be the time to buy in London
LONDON ENGLAND SEPTEMBER 05 An aerial view of the Thames river in London from the air with The Shard in the foreground on September 5 2011 in London England Photo by Tom ShawGetty Images
By Shayan Shakeel
Fri 21 Sep 2018 06:21 PM

UAE investors interested in property in London could look to take advantage of conditions that have turned in their favour over the past year.

Property prices are down 0.1 percent in London over the last 12 months, according to the Hometrack Cities Index. Over the same period the pound has receded 11 percent in value against the dollar, which the UAE Dirham is also pegged to.

With the US Fed indicating further interest rate hikes, possibly four over the next 12 months, the pound is expected to remain under pressure.

“Despite a certain degree of uncertainty from a macroeconomic perspective there is still a high degree of confidence from buyers both home and abroad in the London property market particularly when currency exchanges rate are taken into consideration,” said Nick Witty, managing director, Chesterons MENA.

At Cityscape in Dubai next month, the real estate firm plans to unveil a new upscale residential development in Central London targeting primarily investors from the UAE and wider Middle East. Chesteron’s sales team secured AED 55 million in investments in London over the last six months, according to Witty, owing to a surge in interest from buyers in the UAE.

“London has long been favoured by the Middle Eastern market thanks to sound investment opportunities and solid, and long term capital growth potential. The cooling off of house price growth in recent months, particularly in the top end of the market, is piquing the interest of UAE investors,” he added.

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