19 September 2016
UK residential property has long been a favourite for Middle East investors. Now with Sterling remaining at historically low levels in the wake of Britain’s vote to leave the EU, many are taking the opportunity to build a portfolio at a saving of over 10%. Property agents are reporting a surge in sales to investors from UAE, Qatar, Bahrain, Saudi Arabia and other Middle East and North African states with currencies pegged to the dollar. However interest is moving away from the central London hotspots to Northern cities such as Manchester and Liverpool where yields are higher and there is greater potential for capital growth.
Matthew Lavin of Benoit Properties International says the phones started to ring in the days after the 23 June referendum. The pound, which had reached $1.5 the day before the referendum, fell to $1.31 the day after - a 31-year low against the dollar.
“In the weekend after the Brexit vote we sold six apartments in The Exchange Building in Liverpool to a group of Saudi buyers who had seen the news about the falling pound,” he says. “They saved around $130,000 collectively compared to what they would have spent two days before. They are now looking to purchase 60 more in the North West over the coming months.