Dubai - Mubasher: A dip in the value of the sterling pound is driving interest from Middle Eastern investors pegged to the US dollar, with a 10% increase in enquiries for London real estate, according to a report by Chestertons.
“London has long been a popular property investment opportunity for Middle East buyers, and having experienced a spike in interest last year following the easing of pandemic-related travel restrictions, demand has risen to another level as a result of the weakening of the pound,” said Dennis Chan, Global Head of Sales at the company’s Global New Homes division.
Exceptional savings are being achieved on properties which, six months ago, were on the market for GBP 4 million and would have cost a Middle East-based investor around $5.23 million; and at current exchange rates, the same property costs around $4.32 million, a saving of almost $1 million.
Statistics from Chestertons MENA indicated that the top five source markets include the UAE, Saudi Arabia, Kuwait, Bahrain, and Egypt and that properties under GBP 1 million ($1.1 million) are highly sought after.
Another uplift in enquiries is expected of above 10% in the coming months.
Chan added: “Investor confidence in London’s real estate is long established. Not only does this mature market offer capital appreciation and secure rental returns, but the industry is also monitored and policed by various bodies, bringing peace of mind to those looking to part with their money, particularly if for the first time.”
The Global New Homes division, which leverages Chestertons’ 200 years of experience, is headquartered in Dubai with teams in the UK, the Middle East, and Asia. The full-service team provides Middle East investors with end-to-end property buying expertise.
“Buying property overseas can be daunting, especially when an investor is unfamiliar with a particular city or country. Our Global New Homes division is in place to smooth the path to buying abroad through a service that alleviates any concerns by providing expert advice and an overview of the real estate ecosystem within a particular market,” added Chan.