- Chestertons reports that a drop in the value of the pound is driving interest from Middle Eastern investors pegged to the US dollar, with a 10% increase in enquiries for London real estate.
- Exceptional savings are being achieved on properties which, six months ago, were on the market for £4 million and would have cost around US$5.23million; and at current exchange rates, the same property costs around U$4.32million, a saving of almost US$1million
Dubai, United Arab Emirates: Chestertons, the leading international real estate services firm headquartered in Dubai, has announced a surge in interest for London-based property from Middle East investors looking to take advantage of favourable exchange rates owing to a dip in the value of sterling.
According to Dennis Chan, Global Head of Sales at the company’s Global New Homes division, properties in London are attracting around 10 per cent more enquiries than in the same period last year, mostly from investors based in the Middle East who can now get more value for their money.
“London has long been a popular property investment opportunity for Middle East buyers, and having experienced a spike in interest last year following the easing of pandemic-related travel restrictions, demand has risen to another level as a result of the weakening of the pound,” said Chan.
“Cash-rich investors are maximising their savings by focusing on London’s more expensive neighbourhoods such as Knightsbridge, Mayfair and South Kensington, where they are enjoying an incredible increase in value for money.
“This can best be illustrated by looking at a property which six months ago was on the market for £4million and would have cost an investor based in the Middle East around $5.23million. Compare this with today and the current exchange rate, and the same property costs around $4.32million, which is a saving of around US$1million,” he added.
Statistics from Chestertons MENA also show that the top five source markets include the UAE, Saudi Arabia, Kuwait, Bahrain and Egypt and that properties under £1million (US$1.1million) are highly sought after. A further uplift in enquiries is expected of above 10 per cent in the coming months as the market continues to be buoyed by both the favourable exchange rates and the recent announcement of stamp duty relief.
“Investor confidence in London’s real estate is long established. Not only does this mature market offer capital appreciation and secure rental returns, but the industry is also monitored and policed by various bodies, bringing peace of mind to those looking to part with their money, particularly if for the first time,” said Chan.
The Global New Homes division, which leverages Chestertons’ 200 years of experience, is headquartered in Dubai with teams in the UK, the Middle East and Asia. The full-service team provides Middle East investors with end-to-end property buying expertise, including sourcing, short and long terms lettings, and property management.
In addition to offering expert advice on the London property market, the team also has a wealth of knowledge in South East Asia, MENA and Europe.
“Buying property overseas can be daunting, especially when an investor is unfamiliar with a particular city or country. Our Global New Homes division is in place to smooth the path to buying abroad through a service that alleviates any concerns by providing expert advice and an overview of the real estate ecosystem within a particular market. Put simply, it’s a streamlined and highly effective approach to purchasing, renting and selling,” said Chan.
“When it comes to finding the right property, potential investors have the assurance that our portfolio is both exclusive and handpicked. We represent some of the largest developers in the world, so whether seeking a dream home or a rental property that can deliver high yields, our team of experts take care of the entire process. From shortlisting properties and negotiating the price to mortgage advice and FX services that make sure a deal is concluded, we’ve got every stage covered,” he concluded.
Rounding out the division’s expertise is guidance and advice on Citizenship programmes. It is possible to attain a second passport through residency and citizenship programmes which come with benefits such as visa-free travel to over 100 countries. The opportunity appeals to international investors and those looking to work, travel, and study overseas.
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About Chestertons MENA
Chestertons MENA offers a full range of property services, including residential and commercial sales and leasing, investment agency services, property management, strategic consulting and valuation services. In addition, Chestertons MENA has a very active international sales division, specialising in selling prime, off-plan and completed central London apartments and houses to investors from across the entire MENA region with 31 offices across the UK capital.
With over 200 years of experience, Chestertons is one of the leading international property consultancy firms, in addition to one of the biggest networks of branches in London, Chestertons also has offices throughout Europe, South Korea, the UAE, St Lucia, Barbados, Cayman Islands, Cambodia and Vietnam.
For more details, please visit www.chestertons-mena.com/
Media contact:
JAMES LAKIE
General Manager
E-mail: james.lakie@shamalcomms.com