Barely three weeks after the historic Brexit vote and already property predators are hovering over Britain’s capital city, eager to pounce on any available opportunity resulting from the fallout of the European Union exit and its impact on the property market.
According to international real estate consultant Cluttons, chief among those hoping to benefit from potentially significant price discounts are investors from the Middle East.
Cluttons told international property news portal worldpropertyjournal.com that for those invested in the London property market, the deterioration in the value of sterling overnight will have erased any gains in recent years, particularly buyers from the Gulf, whose currencies retain a fixed peg to the US dollar.
The company’s head of research Faisal Durrani pointed out that any US dollar or UAE dirham investors will find the price of an average prime Central London residential asset US$96,000 (RM386,347) less than it was on June 20. Conversely of course, London residential property is now US$96,000 cheaper for international buyers looking to enter the market.
He said those from the Gulf eyeing a London residential asset will find it 31 per cent cheaper than it was during the last market peak in Q3 2007, suggesting that the British capital may be on the cusp of a significant resumption in property investment activity.
“The longer term implications are too early to assess, but we may start to see the unlocking of London’s stalled residential property market, with investors both exiting and entering the market as we head towards a period of demand volatility,” said Durrani.