Our findings from Cityscape Global 2017

What made Battersea Power Station so popular at Cityscape Global 2017?

Investing in the UK property market has always been a rewarding experience for all of our clients, especially if the property is kept for a sustained period. When we compare both markets, in regards to return on investment and rental yields, we find that investors who prefer the UAE market are driven by attractive rental yields, while the UK market is of a completely different nature. Where the rental yields in the UK are lower, the property value appreciation is higher, which ultimately outweighs the rental yield – making the market more rewarding in comparison to the UAE property market. Therefore, most institutional investors (who usually have better holding power) invest on a long-term basis in the UK property market. With regional prospective investors looking for increased investment opportunities in the UK market, it proved that the launch of Phase 3 of the Battersea Power Station redevelopment turned out to be one of the highlights of the exhibition.

Why has Brexit had little impact on investment?

Brexit has created an uncertain environment in almost all economic sectors in the United Kingdom but when it comes to the London property market, the uncertainty factor poses to be a boon than a bane. Due to the weakening of the pound and the rather attractive currency conversion rate, central London properties have become almost five times cheaper today for most overseas buyers than before the Brexit decision was taken in June 2016. It is noted that investors from UAE, China, Russia, Pakistan and other Asian countries have shown their utmost interest in London’s high-end residential properties since the referendum.

Significant elevation in the number of enquiries has been recorded for UK prime and luxury properties in the first half of 2017 from Asian buyers. Developers have also confirmed the increased interest of overseas property investors in London’s priciest flagship areas such as Mayfair, Knightsbridge and Nine Elms.

According to a most recent global currency report, Brexit made London properties 14.1% cheaper for Indian rupee-denominated investors and for the Russian Ruble-denominated investors. The difference in prices courtesy currency fluctuation is a staggering 28.3%. The currency value-induced discount for Indian rupee-denominated investors is higher than Australia (11.7%), United States (11.6%), China (5.8%) and Europe (5.6%).

Experts believe that overseas buyers prefer investing in London due to its safe-haven credentials including a stable economy, peaceful living environment, dependable legal system and a balanced communal lifestyle. All these appeals of London living cannot be diminished only by the United Kingdom’s decision to pull out of the European Union. In short, London’s prime real estate market is and will always be a safe and long-term bet for investors.