International law firm Trowers & Hamlins hosted Saudi investors at a high profile event, launching research announcing that outbound investment in real estate from the Middle East region grew by 62% in the first half of 2019 as investment in global real estate is growing faster than any other region.
The event, hosted jointly with the Bank of London and the Middle East and Savills Middle East, took place at the Ritz Carlton in Riyadh last Wednesday.
The UK is the most popular country for capital investment, followed by Germany, with London traditionally holding the title of most popular city for global investors, keen to take advantage of currency exchange rates.
Savills Middle East announced research identifying that a £5m investment into prime central London real estate would effectively cost 40% less today than 5 years ago (pre-tax).
Alastair Glover, Dubai based partner, who spoke at the event, said:
“Despite Brexit uncertainty and increased tax costs Middle East investors remain committed to UK real estate assets as a strategic part of their long-term global real estate portfolios. Savills recent research shows that London leads the way for cross border investment into real estate indicating that it is the third most resilient city in the world. The underlying strength of London as a global business and education hub means it is likely to remain a popular investment destination. Based on our own client feedback Middle East investors clearly see opportunities in view of low interest rates, favourable dollar-sterling exchange rates and a significant reduction in average prime central London prices estimated to be around 20% lower than five years ago. Nevertheless, in order to maximise their investment returns, clients need advisors who understand the complex UK tax regime so that they minimise tax leakage on their investments”
Savills predicts that prime London residential property values will recover in a post-Brexit scenario, potentially increasing by 12.4% over the next 5 years. UK GDP is set to grow steadily, with an increase of 27% between 2019 and 2029, with London being one of the prime beneficiaries, as it is responsible for approximately a quarter of all of the UK’s economic output. This is only set to increase as major global companies are incentivized to locate in the UK capital, already Google is investing £1bn into a new King’s Cross HQ which will generate 3,000 jobs by 2020, and Apple is creating another 1,400 jobs to fill its new world-class hub at Battersea Power Station HQ.
Trending investment opportunities in London include King's Road Park, Grand Union, Battersea Power Station and transport hub Triptych Bankside
