Poll suggests Britain is now the top hotspot for UK and overseas property investors
- 23 per cent of UK property investors say Brexit is their reason for investing
- Over half expect market to remain ‘good to very strong’ over the next 18 months
- UK is set to be the main target for global commercial property investors in 2019
Who are the investors?
Four out of five property investors based in Hong Kong, Dubai, South Africa, and the UK are still investing in British real estate, research claims, with a quarter of UK-based investors suggesting Brexit is their reason for doing so.
A poll of 450 high net worth investors based in these four countries indicated that 85 percent of those invested in either residential or commercial property were still keen on the asset class and looking for new investment opportunities in Britain.
The cost of buying British property has been pulled down since the Brexit vote by the fall in the pound, however, a tax crackdown has made it more expensive.
The poll, carried out by Censuswide, albeit for a property developer Seven Capital, also asked overseas investors how strong they believe the UK’s property market will be in the next 18 months.
Just over half, 55 percent, estimate the UK property market to be ‘good to very strong’ with that figure rising to 64 percent when considering prospects in three to five years’ time.
What’s the facts?
Andy Foote, director at Seven Capital said: ‘These figures demonstrate that people generally recognise that there are bigger factors to consider over Brexit when it comes to the overall trends in the UK property market.
‘Realistically, it’s the fear and the perception of Brexit that will have any effect, rather than the physical act of leaving the EU.
‘Ultimately, if the market were to take a dip after Brexit, seasoned investors will know that this would more likely be a catalyst for the inevitable swing back.’
It comes following several gloomy sets of data released recently, which suggest the UK’s property market is grinding slowly to a halt.
What are leading sales agents and investors thoughts?
Knight Frank recently published research which found that the UK had reclaimed its position as Europe’s leading commercial property investment market in 2018.
Over the course of the year the UK overtook Germany to become the favourite destination for property investors, the research suggested.
Its survey of 155 leading property investors representing organisations with an excess of £500billion of real estate assets under management found that 21 per cent of investors identified the UK as their preferred investment market in 2018, up from 12 per cent in 2017.
While over half do anticipate a reduction in investor demand over the next three to five years, a third of investors see demand for UK assets increasing.
Chris Bell, managing director, Europe, at Knight Frank, said: ‘There is a huge weight of capital to be allocated to European real estate, including an unprecedented level of private equity dry powder, and a growing pool of private wealth.
The question is where it will be deployed?
‘The emergence of the UK as the European market of choice in 2019 is interesting, suggesting many think that pricing looks attractive.’
So, what next?
Brexit, No Brexit, Hard Brexit … in the whole scheme of things, it will be another footnote to history in a decade. We have survived the Oil Crisis, 20%+ Hyperinflation in the 1970’s, Mass Unemployment in the 1980s, Interest Rates of 15% in 1990s, the Global Financial Crash in 2009 … whatever happens, happens.
People still need houses and a roof over their head. If property values drop, it is only a paper drop in value … because you lose when you actually sell.
At Alliance Property Group this has been our busiest start to a year and so no let-up in investor demand for the unique investing opportunities in Glasgow and its greater metropolitan area.
Long term, we aren’t building enough homes, and so, as we always say, property is a long game no matter what happens – the property market will always come good.