London property market expected to pick up

DUBAI (June 12): London house prices are expected to increase between 2% and 3% this year, and likely approach 18% to 20% in the next five years, according to global real estate services company, Cluttons LLP.

Due to the surprise win by the Conservatives in the recent UK election, and the number of Middle East investors in the country for the summer, Cluttons expects overall UK property activity will be in an upturn.

“We have traditionally seen heightened activity from Gulf Cooperation Council investors during the summer, as they migrate to the UK in search of a cooler climate or, in many cases, return home for a seasonal break.

The UK continues to hold strong appeal for GCC buyers, as the strength of the US Dollar now holds an 8% to 10% advantage on the British Pound,” said Cluttons head of international residential markets Joanne Leverett in a recent statement.

Cluttons believes the coming summer provides an opportunity for Dubai investors to assess real estate prospects in the UK. London was the most popular city destination from Dubai International Airport last year.

However, it says it will be crucial for investors to understand London’s real estate market dynamics in order to identify the most suitable investment for themselves. The firm also advises buyers to be fully aware of the financial, legal and taxation landscape.

Cluttons, which celebrates its 250th anniversary this year, has a presence in over 50 countries. It provides a wide range of commercial and residential property and facilities management, valuation, agency, telecoms and consultancy services to international corporations, institutional investors, private individuals and families.

This article first appeared in The Edge Property pullout, on June 12, 2015.