Buying property in the UK has always been viewed as a shrewd venture. It was reinforced during the 1980s when Brits were encouraged to become homeowners. This resulted in prices increasing exponentially and, naturally, fuelled the trend. Of course, it was not just homeowners that saw this as an opportunity; it was investors too and not only those based in the UK, but also foreign investors.
In Thailand, we frequently see a variety of projects promoted, ranging from residential property to university dormitories to commercial property. Property values in the UK, certainly compared to Thailand remain high. However, this doesn’t deter the many Thais who see this as an opportunity to make a healthy second income and build some foundations, more than metaphorically speaking, in the UK.
So, what are the main benefits?
Economic conditions and the weak pound
Sterling has continued to fall in value against the Baht since the UK voted to leave the European Union (EU) in 2016. It has made property in the UK more affordable to foreign investors, including Thai nationals. With concerns over the short-term prospects for the UK economy existing even before the COVID-19 outbreak, local purchasing power and confidence was low, thus strengthening the hand further of foreign investors.
The increasing number of international property companies targeting Asians
As UK property becomes a more attractive product, a growing number of global companies are entering the UK property market with the primary intention of selling their projects to Asian investors. With uncertainty surrounding Hong Kong and continued concerns around China’s behaviour on the world stage, wealthy citizens are keen to move their capital out of the region. Property has always been a popular asset class amongst Asians and with market conditions proving favourable; the UK is the perfect option.
A high percentage of Asian students wish to study in the UK
Thai and Asian students studying in the UK are increasing on an annual basis. It is a scenario that creates opportunities for developers and investors. Often families wish to purchase property near to some of the country’s leading universities, therefore giving their own children the best start to their education in the UK. Of course, these properties can then be rented or sold at a later date although some students prefer to remain in Britain. As such, many projects are in these locations.
Political stability and one of the world’s leading financial centres
The UK has a long history as being one of the leading financial centres with London still where many institutions have regional offices. Long-term confidence in the Sterling and the overall economy always remains high, so while investors may witness short-term losses, they can expect significant gains. Britain has a record of political stability, and this once again breeds investor confidence.
Without a doubt, several factors make the UK property market an attractive opportunity for Thai investors. The weak pound increases the chances of generating exciting long-term ROI figures, and with many parents intending to send their children to study in the UK, it also builds roots for future generations. Now is the perfect time to invest with all conditions extremely favourable.
If you are interested in investing in UK property, contact us today to arrange an appointment with one of our local experts.