For most Asian property investor, the UK has been one of the most desirable additions to their portfolio and according to the latest figures, this isn’t going to change any time soon.
Research from property investment firm JLL reveals that neither the Brexit uncertainty nor the somewhat rushed snap General Election are having an impact on Asian property investors. If anything, Asian investors are now more present in the market than ever before.
Brexit: A big change with little impact on the country’s property market
The research also states that Asian investors accounted for a total of 28% of UK property transactions in 2016, a significant increase from 17% the year prior.
The trend of Asian investors looking for property in the UK is most certainly no new development. London especially has had a high level of interest from Asia for years.
The UK property market and London in particular is of special interest to those Asian families who have had links to the country – or city – for decades, as BBC News reports.
For most of those investors, London will remain London, despite any Brexit uncertainty or election fears. The rest have shifted their focus. Away from London as they were less sure about the fact that the city will always remain desirable.
The demand and interest from Asia for UK property alone has been a driving factor for many to expand into the market. The way they buy property is another one.
When Brexit became reality: British pound and property after March 29
The vast majority of Asian investors are cash buyers. Whilst UK investors prefer financing and a mortgage, Asia seems to be going for the exact opposite. And especially over the last couple of months, the drop in Sterling value has been another good reason to add some UK property to the portfolio.
Furthermore, a study by EY, a company providing assurance, tax, transactions and advisory services, has revealed that by 2030 two thirds of the global middle class will be living in Asia. Asia’s middle class has already been the driving force behind foreign property investment (including the UK) from the region. And they will only grow and become more aspirational.
