Middle Eastern buyers in 2017 summer have been eyeing the attractively priced realty market of London for investments.
Although there are many things influencing investment from the Middle East into London, giving it a fillip were that region’s geopolitical tensions and the UK price levels, which fell 35 percent below peak levels, the lowest in about three decades.
Two more factors encouraging Middle Eastern buyers to invest in the British capital are the temporary travel ban imposed earlier this year by Donald Trump, the US President.
In 2014, many Middle Eastern property buyers headed towards the US after the UK hiked the tax on stamp duty in 2014. Since then, they had abandoned London and headed towards America to buy property in New York and other US cities. They are now, however, London-bound again.
Writing in City AM, David Adams, the director of estate agent Humberts, said that they were witnessing an increase in interest from a younger generation of investors from the Middle East. These people are eager to invest more money than before owing to inheritance tax raids on their family’s money. These people are toeing their parents’ line by investing in property in central London in the 80s when the property rates had last dipped in a massively.
According to Adams, families from the Middle East were always tied to Belgravia, Knightsbridge and Mayfair where they headed on family excursions during their childhood. The properties that they are hankering for are usually lateral two to four bedroom apartments, costs of which range around £2 million to £7 million.
Some investors are said to be looking beyond these locations, as they could buy 5-6 apartments for the price of one in a prime location and also save money on stamp duty.
The writer says that they have set their sights on Paddington and outer suburbs of London where newly constructed luxury homes are said to be available in plenty. The opportunity offered by currency devaluation is just what the doctor ordered for high net worth individuals from the Middle East to invest in London.
This has turned out to be an unexpected windfall for London as its real estate market was looking down following in the last few months.
If you are from the UAE and are looking to buy property in London, get in touch with Y-Axis, a leading company for immigration services, to apply for a visa.