European property investors shun the UK, as Middle Eastern buyers step up
- New figures from Fabrik Invest reveal who’s buying property in the UK
- Buyers from the Middle East, Africa and Asia all profiting from UK property
- Buyers from continental Europe account for just 5% of those who are buying
Figures from leading property investment firm Fabrik Invest have provided some fascinating insights into who is investing in the UK’s property market right now. In its first year of trading, Fabrik Invest saw investors from 25 countries put their money into UK property, selling over 125 apartments – and all against the backdrop of the pandemic with its travel restrictions and multiple lockdowns.
UK investors accounted for 60% of Fabrik Invest’s total sales during the past year, yet buyers from elsewhere in Europe accounted for just 5%. Instead, it was investors from the Middle East who showed the most appetite for UK property, accounting for 13% of total sales. They were closely followed by investors from Africa, who accounted for 12% of sales, and those from Asia, at 11%.
“It’s been an interesting year to work in property investment, with so many staff having to work remotely and to adapt to using Zoom and other tech. However, what we’ve seen is that there is still plenty of appetite for UK property, as investors seek out a market that is fundamentally stable in both political and economic terms.”
Matt Harper-Penman, Group Director, Fabrik Invest
In terms of individual countries (and excluding the UK), it is South Africa that is leading the charge, accounting for 7% of the total number of apartments purchased through Fabrik Invest over the past year. Next comes the UAE, which accounts for 6% of total investors, followed by Qatar at 5% and Hong Kong at 4%.
The fact that investors come from 25 countries in total emphasises just how attractive the UK property market remains around the world, even if buyers from continental Europe are largely declining to get involved.
The North, in particular, has been drawing in overseas investors over the past year. Developments such as Michigan Towers in Manchester are providing a low entry point, with investors able to take advantage of massive local regeneration schemes that look set to drive up property prices significantly over the next several years. With a premium location in Manchester’s MediaCityUK, which is in the midst of a £1 billion expansion, the luxury apartments of Michigan Towers have been selling fast to investors around the globe.
“With a booming property market and a well-regulated financial system, the UK has a great deal to offer when it comes to property investment. Overseas buyers looking for stable, long-term rental income can find everything they need here, with healthy yields and excellent potential for capital growth. With business having boomed during the pandemic, we’re excited to see what the next 12 months has in store.”
Dale Anderson, Managing Director, Fabrik Invest