Middle Eastern investors are interested in London real estate because prices will drop significantly after Brexit.

Middle Eastern investors are interested in London real estate because prices will drop significantly after Brexit.

Cluttons, an international real estate consultant, claims that for those who have invested in the London real estate market, the overnight decline in the value of sterling will have erased any gains made in recent years, particularly for buyers from the Gulf whose currencies continue to be fixedly pegged to the US dollar.

Any US dollar or UAE dirham investors will find the price of an average prime Central London residential asset USD 96,000 (AED 350,000) less than it was on June 20, according to Faisal Durrani, head of research at Cluttons. On the other hand, residential real estate in London is now USD 96,000 less expensive for foreign buyers looking to enter the market.

We may be on the verge of witnessing a significant resumption in property investment activity in the British capital, mirroring the results of our recent Middle East Private Capital Survey, particularly as international investors seek out safe-haven assets such as gold and London’s bricks and mortar, which are 31% cheaper today than they were during the last market peak in Q3 2007

“The longer-term implications are too soon to assess, but we may start to see the unlocking of London’s stagnant residential property market, with investors both exiting and entering the market as we head towards a period of demand volatility,” says the author.

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