There is always steady interest from overseas investors in the UK property investment market predominately in London, of course.
According to a recent Global Real Estate Report, South African investors have been advised that they have more opportunities to consider in the property investment market arising outside of the UK and London.
The Global Real Estate Outlook (GREO) biannual report by property investment firm IP Global, looked at the viability, performance as well as the future potential of cities throughout the world in terms of residential property investment.
New cities that caught the eye of the company include the European capitals of Lisbon and Stockholm, as well as Frankfurt and Dusseldorf in Germany.
Director of Africa for IP Global, George Radford said: “Real estate investors from South Africa, Zimbabwe, Namibia, Botswana, Zambia, Kenya, Tanzania, Angola, Ghana and Nigeria have consistently shown a healthy interest in UK property in particular. On a global level, places like London, Berlin and Chicago remain very popular due to their stability and growth potential but we are seeing increased interest from these Sub-Saharan African investors in regional UK markets such as Manchester, Liverpool, and Birmingham, as well as other key European cities.”
Radford said typically South African investors favor buy-to-let international residential properties for diversification and capital protection purposes, as well as income-producing assets, as they are more tangible than other property investments such as property funds.
“While their one or two-bed units are rented out their tenants cover their bonds, and they can look forward to owning the property outright in years to come, or passing the asset onto the next generation,” he said
“Investors looking for greater returns over a 5 -10 year time horizon have now turned their attention further afield. Within the UK, regional cities and commuter belt London continue to offer value and excellent returns. However, outside the UK, IP Global has been championing investment in Central and Western European cities, which have traditionally been overlooked by the market but are thriving.”
There is still huge interest from South African investors in the UK property investment market.
Manchester’s property prices are forecasted to increase by 28.2% from 2017 – 2021
In the last five years, house prices in Liverpool have increased 9% with rental growth predicted at 17.6% from 2017 – 2021.