Overseas investment in UK property will continue to grow throughout 2018

Overseas investment in UK property will continue to grow throughout 2018

2017 was a good year for overseas investment in the UK property market and 2018 is shaping up to be the same, as international investors continue to take advantage of the weak pound.

As house prices continue to rise in the UK, buying off-plan is proving to be particularly attractive to overseas buyers who are eager to take advantage of early discounts and incentives. Investors across Asia, Africa and the Middle East turned their attentions to UK regional cities last year because of the attractive yields that can be achieved, and this looks set to continue throughout 2018.

Cities such as Manchester, Birmingham, Newcastle and Edinburgh have seen a lot of investment buzz over recent months, with a variety of significant projects getting off the ground. Notable examples of major overseas investments include the £400 million investment in the regeneration of Edinburgh centre by Dutch pension fund APG and the £300 million purchase of the Liverpool One shopping centre by Abu Dhabi Investments.

There has also been substantial input from overseas investors in the £500 million investment in Birmingham’s Curzon district which is part of a £7 billion investment in the Midlands.

Demand for property in build-to-rent, purpose-built student accommodation, commercial property and hotel accommodation is very strong across the UK’s major regional cities and the appetite for overseas investors to claim a stake in UK real estate is as high as it’s ever been.