UK property continues to attract international investors in high numbers

UK property continues to attract international investors in high numbers

One-third of all properties valued over GBP 1 million sold in 2018 to date have been bought by investors based overseas, with Asia and the Middle East among the biggest purchasers of British real estate.

Summary:

  • Global investors are capitalising on the weakness of the British pound to add more UK properties to their portfolios
  • A third of all GBP 1 million homes bought in the UK so far in 2018 have been bought by investors primarily from the Middle East, Far East and Russia
  • Sustained property shortages are also predicted to continue driving overall investor returns, with UK rents forecast to rise 15% over the next five years

UK property investment continues to be one of the world’s most in-demand assets.

While global financial markets continue to fluctuate, it appears that investors still regard UK real estate as a safe-haven asset.

According to Investors Chronicle, one-third of all properties sold for GBP 1 million or more since the start of 2018 have been bought by investors based overseas. Key markets include Russia, the Middle East and Far East, territories with a long history of buying prime British real estate.

While a degree of uncertainty exists with regards to the UK’s pending withdrawal from the European Union, this is being viewed as a positive by international property investors. With a weakened pound, investors are using it as an opportunity to buy properties with greater affordability.

What’s more, the ongoing shortage of real estate means that forecasted projections also underline the strength of UK property investment.

Investors Chronicle adds that the number of homes coming onto the market is now at an all-time low. But, tenant demand continues to rise, and this means that investors can expect their properties to remain highly desirable in a market short on supply.

Rents in the UK are expected to rise 15% over the next five years, a projection that’s likely to sustain international investor interest, particularly in key regional cities and economies.

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