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Brexit 'a boon' for Mideast property buyers

DUBAI, June 26, 2016

With Brexit confirmed as the UK’s new reality, investors from the Middle East region, who are looking to buy residential property in London, will now benefit by up to 31 per cent compared to the third quarter of 2007, according to property expert Cluttons.

With Britain waking up to a new and uncertain dawn, Cluttons said, that for those invested in the 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.

"Any US dollar or UAE dirham investors will find the price of an average prime Central London residential asset $96,000 less than it was on June 20," remarked Faisal Durrani, he head of research at Cluttons.

"Conversely of course, London residential property is now $96,000 cheaper for international buyers looking to enter the market," he added.

According to Durrani, the long-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."

“A silver lining today is that those from the Gulf eyeing up a London residential asset will find it 31 per cent cheaper than it was during the last market peak in Q3 2007," he stated.

"This means that we may be on the cusp of seeing a significant resumption in property investment activity in the British capital, mirroring the results of our recent Middle East Private Capital Survey, 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," he added.-TradeArabia News Service




Tags: Middle East | property | Brexit |

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