Why UAE Expats are Investing in British Property

By HopwoodHouse, 20 December, 2017

An unsteady pound is hard for many within Britain to weather, but those based on foreign shores are now making the most of real estate opportunities in the UK.

 

British property is now being snapped up at a rapid rate, with many of those buyers heading into the market from abroad, particularly in areas such as the United Arab Emirates where expats are seeing some great opportunities to invest.

Where To Invest

Foreign nationals and expats in the United Arab Emirates have seen an opportunity thanks to the faltering pound to purchase UK property investments. There has been a 20% year-on-year increase in the number of UAE residents who are investing in British bricks and mortar, however, many seem to be concentrating on northern areas such as Manchester, Lancashire and Birmingham.

London and the South East has been largely ignored by these investors due to the high property prices that they command and the low rental earnings that are available. In fact, the number of foreign buyers in this part of the country has fallen by as much as 60%.

These buyers are largely looking at becoming part of the buy to let market as well as first and second homes, and the availability of expat mortgages may be fuelling the flood of buyers into the country. The easy availability of these mortgages coupled with interest rates as low as 2.74% explains why Britain is so popular when you consider that the average interest rate in Dubai is 4.25%. Previously, only offshore lenders could make these investments possible for expats, however, several onshore lenders have now opened the doors to these foreign buyers, creating a better level of choice.

What Is The Attraction?

The British property market is much sought after around the world, not just because of lending opportunities and good net yields, but also because of stability. Protective legislation and a clear purchasing process makes it easy for many different types of investor to become involved, meaning it is no longer the territory of the very wealthy.

When mortgages in excess of £700,000 or cash buyers were the only ones who could afford to purchase prime London property investments, it was only the elite who put their names on British property deeds. Now, a weak pound, a stable environment and attainable property prices in the north of the country means there are now investments being made by expat nurses, teachers and IT professionals to name just a few.

With plenty of sensible legislation protecting investments and property, the UK is seen as a safe and secure place to invest your money compared with many other parts of the world. Expats in other parts of the globe have been keeping a close eye on the British economy and have seen that now is the time rush into the British property market and snap up what they consider to be a profitable bargain compared with the property available in their own territories.