On Thursday 23 June, many Britons voted for Brexit to protect their economy from non-British investors. The fall of the pound following the referendum, however, appears as a great opportunity for many foreign investors.
The decision of the British to leave the EU last week has triggered a political and financial earthquake with the resignation of Prime Minister David Cameron and the collapse of the stock market after the pound sterling lost 8.8% against the US dollar.
Many analysts predict a decline in property prices while potential buyers postpone transactions due to the general uncertainty of stock market. For foreign investors, however, it seems to be the right time to find some great deals.
“Anyone who does not use the pound will see an opportunity” said N. Brooke, chairman of Professional Property Services, a consulting firm specialized I real estate investment based in Shanghai.
Interest from China, Hong Kong and Singapore
Former President of the Royal Institution of Chartered Surveyors, a British organization that promotes the real estate industry, Brooke said that some of its wealthy customers from Hong Kong and China are already seeking new investment opportunities in the UK.
For international real estate company Knight Frank, even if it is too early to assess the impact of the British referendum, the drop of the pound will definitely lead to a significant gain in purchasing power of foreign investors.
People from China, Hong Kong and Singapore already have a solid experience in real estate investments in UK, particularly in London. The Chinese international property portal Juwai.com expects a 30% increase in queries for properties in UK in June compared to May.
Property prices in London are among the highest in the world. With the referendum, the residential market should fall by 5% across the UK, and even in London, according to KPMG consulting group.