Fundamentally, UK Real estate remains a strong asset class. Despite this, over the last year in the UK we have seen a marked downturn in the real estate market caused by the credit crunch and the continuing financial uncertainty affecting the global economy.
Currently, there are a number of active buyers, mostly overseas investors, who have had the added benefit of the devaluation in sterling. Generally, yields have risen as values fall and on top of this, sterling has fallen, which means that overseas investors have been able to buy real estate for considerably less than its mid-2008 value. Many analysts believe that the remainder of this year should prove to be a more active market, with the extent of price adjustments over the past few months serving to stimulate interest from a range of investors.
UK real estate is now trading at prices not seen in this decade, and there are good opportunities to buy real estate that was previously out of the reach of many investors.
Over the last few months we have seen numerous companies, UK based and foreign, preparing to launch funds to seek opportunities to invest in this advantageous market.
The UK provides good real estate investment opportunities and there are no restrictions on foreign ownership or occupation of real estate.