Middle East investors looking to buy property in London will find this a good time to pick up a bargain following the UK’s decision to leave the EU, experts say.
On the other hand those already invested there will have woken up this morning to find close to an average of $100,000 wiped off the value of their property overnight.
The value of the pound sterling plunged by over 10 percent against the US dollar, to which the UAE dirham is pegged, following news that UK voters had narrowly chosen to quit the EU in a referendum.
“Any US dollar or UAE dirham investors will find the price of an average prime Central London residential asset USD 96,000 (AED 350,000) less than it was on June 20,” said Faisal Durrani, head of research at Cluttons.
“Conversely of course, London residential property is now USD 96,000 cheaper for international buyers looking to enter the market.
“A silver lining today is that those from the Gulf eyeing up a London residential asset will find it 31% cheaper than it was during the last market peak in Q3 2007.”
He added: “The longer term implications are too early to assess, but we may start to see the unlocking of London’s stalled residential property market, with investors both exiting and entering the market as we head towards a period of demand volatility.”