While some investors have shied away from London in this post Brexit world, Middle Eastern property investors still prefer it according to a recent report. International real estate consultancy Cluttons has released the third installment of its Middle East Private Capital Survey that showed that buyers from the Middle East still rate Brittan highly when it comes to real estate.
The survey polled high net-worth individuals based in Gulf Cooperation Council (GCC) countries and found that the British capital resonated with 11 percent of respondents as the top preferred destination for property investment.
Middle Eastern buyers are not new to London’s real estate market with investors scooping up property here as early as the 1950s. However, Cluttons noted that investments in Britain this year are particularly remarkable given the Brexit referendum.
“Of course, London’s residential real estate has long been a global star performer, with close to 70 percent residential capital value growth recorded in the past ten years alone and we continue to witness an uptake in interest from Middle East investors,” Faisal Durrani, head of research at Cluttons, stated.
He added that Brexit saw the sterling drop by 12 to 13 percent which in turn lured Gulf investors to prime markets in London including Belgravia (pictured) and Chelsea. “Currency based investment strategies are often overlooked, but they are increasingly significant, particularly in the current environment of sterling weakness,” Durrani revealed.
New York City has long been another favorite location for Middle Eastern investors and has received massive inflows of late from the Abu Dhabi Investment Authority and Qatar Investment Authority, according to the Cluttons’ report. The relatively lower price points in the city apparently make it an appealing alternative to London for private investors.
In somewhat of a surprise, Singapore is the third most attractive city to GCC’s upper crust due to its pro-business environment, political stability and high quality of life. Cluttons regards the USD2.22 billion acquisition of Asia Square Tower 1 by the Qatar Investment Authority as a sign of continued confidence in the city-state. However, Singapore’s overheated property market has caused some concern among investors.
This story was originally published on Property-report.com.
