Brexit’s Weak Pound Attracts Surge in Foreign Property Investment
8th March 2017The pound has dropped about 18 per cent against the Euro and 12 per cent against the Euro since the Brexit decision when the UK decided to leave the European Union.
There’s also speculation that it could fall further once Article 50 is triggered, although the long term situation still remains unclear.
The drastic changes in currency value means that those thinking of investing in property in the UK are even more attracted to investing now as they will get far more for their money.
Millionaires from India, Middle East and Turkey have joined the race to own a piece of property in London. Elsewhere in the UK, cities such as Manchester, Liverpool, Leeds and Birmingham have all seen an influx of foreign money.
In 2015, the average price of what the report calls an “ultra-prime residential property” in Mayfair was $5,306 per square foot. Since then, it has dropped by 10.6 per cent to $4,741 per square foot.
The drop in price over the last six months has triggered a wave of enquiries and buying demand from Indians living abroad, as well as Turkish and Middle Eastern investors, for properties valued at £5m or above in the UK capital.
The weaker pound does also benefit ex-pat Brits selling property overseas but there is much uncertainty and will remain an unknown until an era of post-Article 50.