Research has shown that economic uncertainty doesn’t seem to be discouraging property investors, particularly those in Asia.
It seems like undeterred investors are taking full advantage of the sterling’s weakness and looking beyond the current economic climate. According to JLL, Asian investors made up 28% of UK property transactions in 2016, an increase of 17% from the previous year and Cushman & Wakefield discovered that Asian firms spent around £4bn on property in London over the first six months of 2017.
The demand for property amongst investors has convinced many that this is a market worth expanding and there are some clear cut examples, such as the purchase of 20 Gresham Street for an astonishing £315million by investors China Resources Limited or Ho Bee Land’s purchase of 67 Lombard Street for £129m. This vast amount of money being spent is an indication as to the way Asian culture approaches the purchase of a property. They tend to avoid financing and mortgages and stick purely to cash purchases – Which is the exact opposite of what we’re used to in the UK.
Experts are predicting that two-thirds of the global middle class will be living in Asia by 2030, particularly with the now-emerging Chinese middle class expecting to reach one billion. It’s this group that has been powering investment as they continue to get richer and more aspirational. Many families in the upper middle class are now looking ahead towards strong investment opportunities that can be used to send their children to school abroad or can be used to emigrate their families.
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