Cluttons: Brexit to benefit Middle East investors
Those from the Gulf eyeing up a London residential asset will find it 31% cheaper than it was during the last market peak in Q3 2007
With Britain voting 'yes' to leave the European Union (EU), real estate consultancy Cluttons said that for those invested in the property market from the Gulf, the deterioration in the value of sterling overnight will have erased any gains in recent years, whose currencies retain a fixed peg to the US dollar.
Faisal Durrani, head of research at Cluttons, commented: “Any US dollar or UAE dirham investors will find the price of an average prime Central London residential asset $96,000 (AED350,000) less than it was on 20 June.
"Conversely of course, London residential property is now $96,000 cheaper for international buyers looking to enter the market."
He also added: “A silver lining is that those from the Gulf eyeing up a London residential asset will find it 31% cheaper than it was during the last market peak in Q3 2007, suggesting that we may be on the cusp of seeing a significant resumption in property investment activity in the British capital, particularly as global investors seek out safe haven assets such as gold and London’s bricks and mortar, which we expect will retain its appeal.
“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.”