While the Brexit vote of 2016 was immediately followed by a variety of doom-laden prophecies, it’s been a real boon to the London property market. The weakening of the pound against the dollar and the euro has enabled foreign investors to buy London commercial property more cheaply than ever before. Buying figures show that overseas investment in London commercial property was worth £7.4bn in the period from January 2016 to June 2016 (the period immediately before the referendum). This year, it was valued at £8.8bn for first two quarters, which represents a rise of 18.5%.
Foreign investment in London
Fiona Davidson, estate agent at Henry Wiltshire Nine Elms, looks at the reasons for the phenomenal growth of foreign investment in the capital. “The London property market has always had a reputation as a safe investment, and, before the referendum, part of the appeal of London was its links with the rest of the EU. But the choice to leave the EU weakened the pound, making the UK a cheap option for overseas property investors. It seems that cheap property has an even stronger appeal to investors than EU membership did.”
German investors buy property in the City of London
Another interesting trend is the interest shown by German investors. This year has seen seven deals in the City of London with a price tag greater than £200 million. Of these, four have been completed with German investors, making them the largest group of investors after Asians.
Deutsche Bank signed a twenty-five year lease on commercial property near Moorgate this summer, showing their commitment to both pre- and post-Brexit London.
Buy and let property in London
Henry Wiltshire are always looking to connect with buyers, sellers, developers and investors. Experts in the sales and lettings of London properties, Fiona and the team can support you throughout the process and help you achieve your financial goals. Contact them today on 020 3969 5620 to get started.