UK is the number 1 destination globally in terms of cross border real estate investments. London, in particular, is the number one real estate investment destination in Europe. Real estate investors from around the world consider London and the UK as a major investment hub. The UK real estate market is widely considered the biggest in Europe and there is a thriving commercial property sector as well. Foreign investment is a major backbone of the property market each year in the UK. Chinese direct investment is deployed in a major portion towards the UK with investments coming from global high net worth individuals in other countries as well.
London holds the maximum attraction for investors since it is one of the biggest financial hubs in the world and is home to several global investment professional services organizations. London is one of the biggest cities in the world and the commercial market is still booming in London and there is high occupancy among multiple companies that choose to set up shop in London, meaning that real estate is a low risk investment for global biggies in the city. Stability in the UK is a major reason behind the increased confidence of global investors who are deterred by lack of transparency and rule of law issues in other global markets. The UK’s ability to adapt to global evolution will also be a major plus point in drawing more cross border investments in the future.
The UK realty market has always witnessed heady demand all throughout the year and the vacancy rates are abysmally low. Even after Brexit, the UK realty market has been booming and buyers have continued to purchase new properties. With huge demand for housing and rising property values, there are chances of lucrative returns from investing in UK properties, particularly in zones like the North West where the market is booming on account of heavy infrastructure development, relocation of businesses to the area, new jobs and more demand in the rental sector amongst young professionals.
The vacancy rates are really low and in case of properties in Central London, for example, have already fallen to record lows in the third quarter of the current financial year as per research estimates. With huge demand levels and prospects of increasing rentals, occupiers are looking to fulfill wealth creation goals and this is leading to low vacancy rates on account of robust demand overall. Occupiers are also shifting focus to nontraditional and emerging areas. The investment market across London is dominated by foreign buyers who account for more than 60% of purchases annually as per reports. With employment expected to grow by 6% by 2019 and a supply constraint, rental growth will be a major driver for investors. Other zones like the West End, Midtown, Docklands and Southbank will also continue to witness low vacancy rates driven by interest from global investors and occupiers.
The UK housing market has witnessed steady demand after the Brexit vote led to a hit for the sterling. The attractive GBP valuation makes real estate investments even more attractive in the UK for foreign players. The decline in the pound will always prove lucrative for investors who can now snap up premium or luxury properties at lower prices. The Sterling has tumbled consistently against the US dollar and other currencies although it has recovered a little since the Brexit vote. The currency devaluation, however, is deemed good for investors and UK’s property market in general.
The somewhat dramatic fall of the pound is enticing investors from the Gulf to snap up prime properties in the heart of London and other major UK cities. Property prices have also come down a little in prime zones on account of the weakening pound and uncertainty over the Brexit vote. Middle East buyers have already reentered the market and so are investors from China. In fact, Chinese investments are forecasted to grow even more this year on account of the declining pound. Foreign investors are looking to purchase both residential and commercial properties in order to take advantage of the weakening pound. Enquiries are going up by the day since investors know that they will get a better deal in the present scenario.
UK is one of the biggest business hubs in the world. London is one of the major financial capitals of the world along with being a major hub for technology and industry. Cities like Liverpool and Manchester are also rising to prominence with new age technology growing side by side with manufacturing, tourism, education and the service sector.
The UK is one of the biggest business centres in the world. The UK also has a really competitive tax system that makes it even more attractive for businesses due to the incentives on offer. Tourism has always been the UK’s strong suit with multiple landmarks located all across England, Wales and Scotland. The UK attracts one of the highest tourist footfalls every year in the world.
The UK has some of the best tourism hotspots including the beautiful Lake District, Cornwall, Brighton, Yorkshire, Cotswolds, Bath, Devon, Suffolk and Norfolk. The United Kingdom is the 8th biggest tourism hub in the world and a whopping 36.116 million people visited the UK in 2015. Foreign tourists spend in excess of $20 billion annually in the UK and the number of travelers from Europe is larger than those from America or Canada. London continues to remain the principal tourist attraction in the UK with the Tower of London being the most visited landmark in the country. Domestic tourism is the strongest foundation of future growth for the UK and the busiest months are usually in the summer and also during bank holidays. The country buzzes with tourists in the month of August as well. There are travelers who also prefer Wales, Swansea, Lancashire and Blackpool among other coastal resorts.