London has been a prime real estate market for years with its strong historic returns, mature laws that protect the investor and its position as the financial hub of the world.
Currently the United Kingdom is in a state of limbo with government officials unable to reach a clear conclusion in regards to Brexit negotiations. Brexit may be a frustrating process for natives of the UK, but for real estate investors in India and around the globe, it serves as a golden opportunity to acquire property in the United Kingdom, particularly in London.
While cautious investors are looking to wait out the ongoing Brexit storm, savvy investors are making their move. In fact, a recent report by Arabian business suggests that Middle East investors continue to acquire real estate in the UK, despite the Brexit uncertainty. This suggests confidence in the British property market’s future.
We break down 3 key reasons why London homebuyers are the real Brexit winners
A Sterling Buyer’s Market:
London has become a complete buyer’s market as real estate dealers have begun to lower their prices to ensure sales. Business Times reports that since the first quarter of 2017, London housing sales have been down by 14%, giving foreign investors an opening to procure properties in the UK at a lower price. London’s home buyers are turning out to be the only conqueror in Brexit, with prime locations in London dropping discounts and pricing lowest in almost a decade. Property Reporter UK reports on property finders like Stacks Property Search to approving deals with 20% – 22% less than the asking price. Experts comment that First-time buyers are in an especially strong position to negotiate deals.
Increased activity post Brexit: Whether the UK goes through with a hard Brexit or a soft Brexit, a result is inevitable. Estate agencies like Winkworth and many others forecast increased activity in the real estate market following the conclusion of Brexit. The current time frame is a unique one with properties in London being sold off with discounts and lower rates, as well as future predictions of UK real estate prompting higher yields. Research suggests the market will begin to improve in the latter half of 2019. The UK, being a global powerhouse, will certainly strive to improve its economy, real estate being a crucial part of that goal.
Growing UK-India Collaborations: It is no secret that the UK as a country has taken a major hit since Brexit. The British government is working harder than ever to attract foreign businesses to invest in the UK to achieve stability and goodwill. As part of their endeavour, Indian investors have been a key priority. Recently, WBR Corp UK, a London based firm, launched the first ever Global Indian Business Excellence Awards in the British Parliament to strengthen UK-India alliance. This opening can serve as a window to not only owning real estate but also safeguarding your business while setting down roots. First-time buyers are given an extra boost by the government with various schemes and support systems like Lifetime Isa, shared ownership, starter home initiative among others.
Hard Brexit or Soft Brexit, how will it affect your investment in the future?
The new deadline for Brexit is set for October 2019 and while investors may feel uncertain, this extension may, in fact, be a blessing in disguise irrespective of the outcome of the UK leaving the EU. Market researchers suggest that even if Britain is given a hard Brexit, despite the predicted decline in the aftermath of Brexit, the real estate pricing will grow, simply in a more gradual manner. However, with the current political reports, the UK is seeking to receive a soft Brexit, which will not only start its economic recovery faster but will also drive the government into seeking foreign investments more than ever before.
What can you expect as a real estate investor in London in the current political situation?
The uncertainty of Brexit has been daunting, especially since it affects the UK in its entirety. However, adding London in your real estate portfolio and securing land in the UK comes with its own perks. Despite the outcome of Brexit, economists predict there are high chances of the economy to dip following the chaos, however they forecast a rise in the market once the decision is followed through. As an investor, the current time is an opportunity that shouldn’t go amiss, especially since London has been one of the prime targets of an international property investor.
The final verdict on owning real estate in London
Brexit may have many scratching their heads, but for a real estate investor, this has proven to be a rare opportunity to buy properties in the UK, especially in London. Whether you’re looking to expand your portfolio, safeguard your wealth or simply desire to have a second home in London, it is the right time to invest in the UK real estate market.
Are you interested in owning a home in London but not sure where to buy? Krypton Global Investments offers expert advice and services for UK Investments. Get in touch with us at [email protected] to determine the best property for your investment.