The real estate market of the United Kingdom slumped due to the risk of a no-deal Brexit after January 31, 2020. At the same time, the coronavirus started spreading around the planet, which was significantly affecting the economy because of lockdowns and a ban on cross-border travel.
However, the market is now normalizing and again becoming popular among investors from Asia.
According to the annual London Report by Knight Frank, a real estate consultant, which was published this February, the capital’s office property market expects £4 billion ($4.6 billion) of investment in 2022. A considerable part of this amount will come from the Asian-Pacific Region, specifically Singapore, Hong Kong, Malaysia, China, and South Korea. This is almost twice as much as the last year’s capital flow from this part of the world.
Investment slowed down during the pandemic for purely practical reasons: the imposed international travel restrictions made it more difficult to inspect buildings in person. Now, as the restrictions are being eased, the number of real estate transactions by international investors is growing.
Linda Jacques, a partner at Lester Aldridge Solicitors, believes that Asian nationals are investing in British real estate primarily because of the flourishing market, especially in London.
The United Kingdom in general is open to investment from all over the world: there are few obstacles for establishing new companies in this country, the government provides incentives, and the tax regime is quite favorable.