Business | Markets
Bargains abound in UK market
Both tumbling UK property prices and the most favourable exchange rate against the dollar since 1985 are providing opportunities to bag real estate bargains for British expatriates living in the UAE.
- By Jane Ferguson, Business Features Writer
- Published: 22:59 January 29, 2009
Dubai: Both tumbling UK property prices and the most favourable exchange rate against the dollar since 1985 are providing opportunities to bag real estate bargains for British expatriates living in the UAE.
Levels of interest however have yet to match those expected by industry specialists.
"Property prices in the UK are probably around 20 to 25 per cent below peak boom prices," Mile Shipside, commercial director of rightmove.co.uk, told Gulf News. "The exchange rate means you can insulate yourself against further price falls - even if they fall another five or 10 per cent."
According to figures accessed by the Evening Standard, London house prices fell by an average 10.9 per cent in the past year. New figures released yesterday show the worst-hit area saw average sales drop by £50,000 (Dh261,901).
Separate data also shows that prices could fall by a further 20 per cent this year before rising slightly next year.
Sale price monitor Hometrack said the average London price now stands at £279,000. The 20 per cent fall, predicted by property experts Capital Economics, would reduce that to £223,200
Some experts based in the UK stressed that the falls in prices mean that this year top quality properties would be up for grabs in England, providing opportunity to purchase bargains on the luxury end of the market.
The effect of the thousands of jobs that have been lost in London's financial sector since the start of the global financial meltdown is now being seen. Economists say a further 150,000 jobs will go by December, forcing bankers, lawyers and other finance workers to off-load multi-million-pound homes.
Liam Bailey, head of residential research at agents Knight Frank, told the Evening Standard: "The £1 million to £2.5 million sector is the so-called "entry-level" for City workers. It is this segment of the market that appears to have been hit most by actual job losses and fears of further job cuts in 2009."
"People returning can buy bigger properties than they could have a year ago," Maud Rousseau, Associate Director of TTA Group who represents primelocation.com, told Gulf News.
Shipside added, "2009 will be the year of the quality sale in the UK." However, real estate agents based in Dubai said they haven't experienced interest from Britons here in investing back home just yet.
"We are promoting that but there is not the stream of people that would be expected," Matt Asplin, sales manager at Cluttons real estate agency told Gulf News. "We have had a couple of enquiries."
Asplin said the opportunities in the UK are ripe and the local market in Dubai is likely to recover more quickly than elsewhere, leaving a window for British expatriates to invest.
"If the financing was there I don't see why people wouldn't do that," he said. "I think here [the UAE] is going to recover a lot quicker than the rest of the world. If people have spare cash we encourage people to look at England. I think it is sensible."
"Investors in the UAE and the Middle East region, exploring property purchase option in the UK, is gaining ground," said a spokesperson from estate agents Hamptons International. This follows reported average property price declines of up to 15 per cent in the UK market. The demand for property in Britain from the Middle East region also arises from the favourable exchange rate prevailing, with UAE investors standing to gain up to 39 per cent on property prices now, compared to last year."
"High net worth individuals and expatriates in the Middle East have always shown considerable interest in the European property market and the trend is likely to prevail."
Looking ahead, Shipside believes the best time for British expatriates to buy at home will be towards the end of this year. "2009 will be the window to buy in the UK - and buying before the rest of the market comes back in," he said. "Agents in the London area are expecting a bounce back in Spring 2010. If you buy before that activity you are going to get the best deals which points to the second half of this year," he claims.
Share this article
More from Markets
More from Business
Popular in Business
-
XPRESS
Way to go this DSF
A fun-filled route to guide you to all the happening dos in town
Business Editor's choice
-
Tight security for air show
Police announce measures to keep people and property safe
-
Nokia aims for 300m customers by 2012
Core focus will be on messaging, maps and navigation, music and applications
-
Court orders freeze on all Saad assets
Many UAE banks exposed to troubled conglomerate
