2019 Property: Comparing UK, Europe and the Middle East

The UK Property Market

The UK property market predictions depend on Brexit; some analysts expect a bounce in the property market in April's first week. However, foreign investment in London Prime property continues to grow where foreign investors are keen on buying assets to hedge against market volatility. 

JLL expects UK prices to gain 0.5 per cent, London property to gain 1.5 per cent, and Savills expects the price to be 1.5 per cent for the country and -2 per cent for London in 2019. 

Savills expect the price to rise 14.8 per cent, and JLL UK prices gain forecast is 11.4 per cent for the coming five years. However, rates vary depending on regional variations.

European and the Middle East markets 

Dubai markets rose on the last day of 2018, outperforming global benchmarks as the indexes surged 2.4 per cent, leading to one of the biggest gains since June 2017, mostly due to the real estate stock rebound. Although the real estate markets in the Middle East are not showing strong signs of recovery, overall, the gulf markets fared well in the last year. 

Saudi Arabia is expected to join the emerging markets index (MSCI and FTSE Russel) that attracted an inflow of funds. Saudi markets remained a favourite location for fund managers.  

Some investment firms are claiming a growth of 6 per cent in prime European cities such as Paris, Berlin, and Madrid. Moreover, some expect the economic factors to improve, promoted by low-interest rates and increased demand from international investors and local buyers. 

• Experts believe the ECB will increase rates in the third quarter. Several purchases from the Middle East, Argentina and Venezuela leading to a high volume of property transactions were reported.

• The low exchange rate attracted investors from the Middle East and America, and London property was down in the year, but numerous growth predictions were made. Some buyers expect the current environment to be suitable for investment, where some dark basement apartments are offered at 30 per cent lower rates. 

• The US buyers are now getting about a 25 per cent discount in prices, and it is estimated that they may continue to invest, even when the foreign buyer taxes are introduced, as there are several ways to recover the price. 

• Most international buyers in London are the ones who invested in the post-recession phase when the market delivered attractive growth. 

The Nationwide survey claims the house price will rise 4.2 per cent in 2019 in Ireland if the Brexit deal happens without many difficulties. Agents expected the price rise in Dublin to be around 2.8 per cent in 2019. 

Expats Relocating to the UK

Currently, holiday homes or traditional expat locations are driving the markets. Still, there are fears related to the local economic factors, and many expats are opting out of other European locations. 

Traditional locations are getting Brexit buyers, especially those relocating from other parts of mainland Europe. So, for example, some families are relocating from Spain, France, and Portugal to UK low-cost regions, particularly in areas where properties are below €200,000. 

To know more about UK properties, click Hamilton International Estates (www.hamiltoninternationalestates.com).