Real estate in London: how to benefit from the fall of the pound
Interest in the real estate market in the UK capital has not decreased for decades. Foreigners are actively investing in residential and commercial facilities. According to the results of the 1st quarter of this year, the U.S. citizens invested most in real estate in London. Their number has increased by 85% compared to the previous period. There is also growing interest from the Indian population.
The beginning of the year was marked by increased activity on the part of foreign investors for the London real estate market. Along with traditional buyers of residential and commercial properties in the metropolis from Denmark, France and Spain, a large number of U.S. and Indian representatives entered the market.
According to statistics, the traffic on the site Chestertons by residents of the United States increased to 10%, although in 2017 it was only 3.3%. The reason for this activity was the pound’s depreciation against the dollar.
Web traffic from the Indians is also growing. The main factor is the strengthening of the country’s economy, improving the welfare of its population. The total number of Indians who are interested in real estate in London, recorded at 1.3%.
The cost of objects in the metropolis also increases demand. In a short time, prices have fallen by 20%, which is associated with the processes of Brexit. Foreigners who are considering the benefits of buying property in the long term, invest in commercial and residential facilities. They are confident that the decrease in value is a temporary situation, which will allow to get high income in the future.
There is also growing interest in London real estate from the Asian region. Investors from Hong Kong occupy 6% of the market among buyers, and their volume will increase. For businessmen from this Asian country housing became cheaper by 28% over a period of 5 years.
Brexit processes and instability of the pound force sellers to reduce prices and make good discounts. Hong Kong investors use this chance as a profitable way to invest money. It played a role and the situation in the Asian country, where the market is still standing.
It is too early to make forecasts, experts are cautious about current events. Price fluctuation is a temporary phenomenon, and soon we can expect an increase. Therefore, you should think about buying real estate in the UK capital already now.
Crisis phenomena have not yet touched the tourist sector, which continues to increase its turnover. For the 2nd quarter of this year the profit of the country’s hotels amounted to 3.2 billion euros. In the total income of the sector in Europe, this amount takes 28%. The flow of visitors to the megapolis is not declining, so the real estate of the tourist sector will be relevant for a long time. Some travelers, who come to London to stay, decide to buy accommodation here, while the design is simplified, due to the country’s location in the EU. It is not yet clear how easy it will be to buy real estate after the completion of the Brexit procedure.