Indian investors turning to the UK

Indian investors turning to the UK

A new study by Cluttons, the leading estate agency and property consultancy, has revealed that Indian buyers accounted for 22% of prime central London buy-to-let properties in 2017, which is up by 5% since 2012. This is a trend that is being seen by numerous agents across the investment industry and it’s not just London that Indian investors are interested in. UK cities such as Leeds and Bradford, with strong Asian communities, have also seen a significant rise in demand.

So, what is behind this major uplift:

– The growth of India’s economy is a significant factor. With an economy that is outpacing many other countries, Indian investors are becoming more globally-minded with where they place their money. Changes in legislation with regards to how much money can be taken out of the country has played its part in this, with the upper limit for a family of four rising from $400,000 to $1 million.

– The UK is seen as an attractive location for property investment due to the decrease in the pound’s value. After the Brexit announcement, the pound lost approximately 15% of its value against the rupee at the end of 2016. Although the pound has fared better since then, UK property still remains cheap for Indian investors.

– The trials and tribulations of state-owned banks and the demonetisation of high-value banknotes at the end of 2016 has shaken the confidence of Indian investors in traditional investments and the relative safe-haven of UK property investment is proving to be an attractive proposition.

Cluttons expect investment in UK property from Indian investors to grow apace throughout 2018 with UK cities that have strong Asian communities seeing significant growth.