The Sterling’s drop over the last six months has triggered a whole new level of investment from Indians living abroad, as well as Turkish and Middle Eastern investors for London’s big budget properties with a value of £5m or more.
Ever since the UK has decided to divorce the EU, the pound has lost 18% against the US dollar and 12% against the euro. This decline in value has led to some significant savings and investment opportunities for US dollars investors in London’s property market, the Beauchamp Estates’ 2017 Wealth Report has revealed.
Two years ago, in 2015, the average price of what the report dubs an “ultra-prime residential property” in Mayfair was $5,306 per square foot. Currently, the price sits at $4,741 per square foot.
Whilst domestic buyers seem to have taken a backseat when it comes to investing in the UK’s property market, enquiries from American buyers for example increased by 10% and sales by 3%, the report revealed.
The only ones topping this are investors from the Middle East and Asia, which saw an increase in enquiries of 15% and in sales of 10%.
The one thing the report didn’t look at is how the rest of the country’s market is doing. With only focusing on London’s high-end market, the research doesn’t take into account how other parts of the country – and the property market – are being affected.
The UK’s other major cities, like Birmingham, Liverpool and Manchester, are also seeing a rise in foreign, especially Chinese, investment.