UK property inquiries from Qatar, Middle East up 25% after Brexit: DTZ

In the wake of the unexpected decision of the UK to leave the European Union (EU), global real estate services firm DTZ has recorded 25% increase in property inquiries from Qataris, including other GCC investors from Dubai and Saudi Arabia.

Citing a report from DTZ’s London team, Ravvy Kaur, surveyor, Valuation Advisory at DTZ, said many property investors from the Gulf are “making the most” of the devaluation of the British pound and the decrease in real estate asking prices.“Immediately after Brexit, many people were on the phone asking ‘What can I get, and how can I make the most out of it?’ They can immediately see the devaluation of the pound, which could take some time for it to recover,” she said.Citing a 24% discount when buying property in the UK after Brexit, Kaur said it is a “good period” for investors to “make the most of the opportunity, and invest while they can.”According to Kaur, strategies by institutional investors in the UK include a “wait and see” investment approach, while international investors “are taking advantage of favourable exchange rates,” devaluation of the British pound, and the opportunity to enter the UK property market.“First, you’re getting an exchange rate benefit of 14% and on top of that you’re also getting another 10% decrease on the asking price. In total, you’re getting about 24% decrease and if you put that into perspective, now’s a great time to buy property in the UK,” she noted.Kaur also said many Qataris invest in commercial and residential properties in prime locations like the West End of London, Mayfair, Kensington, Richmond, and some of parts of North and East End, and Canary Warf.“The first approach is to buy property and rent it out for additional income as an investment property, while the second method is to invest in a residential property in the UK to have a home within London in high-quality townhouses within prime areas like Kensington and Richmond,” she said.On the pound devaluating further, Kaur said “further depreciation” of the British pound would depend on future policies and decisions by the government.However, she expressed optimism that over time, “momentum will pick-up.”“It’s really early to say what will happen next but people are definitely trying to make the most out of Brexit…shock of the UK’s decision to leave the EU will eventually tail off, and commercial and residential price growth will pick-up in the medium term,” Kaur said.