Tuesday, 15 August 2017

International Investors Remain Committed To UK Real Estate

New research has found that, despite the ongoing uncertainty over Brexit, international investment-seekers remain committed to the UK's real estate market.

One of my greatest concerns since the vote to leave the European Union has been whether the international community will continue to view of the UK as a financial hub and appealing place for investment. One area that could be the most adversely affected by a hard Brexit is real estate investments. In 2016, investing in real estate accounted for £44.4 billion of the total investment in the UK.

Uncertainty naturally has an impact on the industry’s attitude towards investing in the UK, but these attitudes also vary by investor, the origins of capital, investment strategy and the stance on Brexit. - Andy Pyle, KPMG’s UK Head of Real Estate

There have been many studies to help the investment community understand the effect leaving the European Union could have on the United Kingdom. New research has found that international investors remain committed to the UK's real estate market despite the ongoing uncertainty over Brexit. A survey of 60 of the world’s leading institutional investors found that 46% intend to continue with the same level of investment in UK properties; only 10% said they expected to stop investments altogether.

On a positive note, data from residential property adviser London Central Portfolio (LCP) shows that Indian investors have increased their spending in London, with the country’s buyers now accounting for 22% of prime property sales in 2016-2017. The Middle East slipped into third place, representing 21% of all sales. The “Prime” areas of London include Kensington and Chelsea, and the City of Westminster

Recent surveys have demonstrated the continued appetite among global real estate investors for opportunities in the UK, despite ongoing economic and political uncertainty. What Brexit means for real estate investing remains unknown over the long term, unfolding day by day. That is why there is a vital need to be prepared for the unexpected.

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