Mutli-billion investment 2012-10-09

Mutli-billion many- Arabs shape up 15% of real estate market deals in the UK

   Nevertheless, the study showed that UK, comprising 33 % and Russia, comprising 18.7 % were extra active participants in the £10m-plus property sector than the Arabs. Seen to set the trend on overseas investors is UK’s projected “Mansion Tax” in which some wealthy Arab buyers who bought UK houses are expected to pay an annual fee as much as £140,000 ($222,466).

Arabian Business as well reported that a lot of Arab owners will be greatly affected by the ruling once it takes effect next year since most of them buy UK property through holding companies. Although 88 % of advisers: tax accountants and lawyers see UK’s shifting tax environment as the weakest point hindering buyers to invest in the UK real estate, 87 % on the other hand, said that they can wait for the result of the consultation on the proposed changes. 67 % remarked that there is a possibility of them looking to transfer ownership to a trust.

The Knight Frank statement as well showed 50 % of surveyed participants said that they are looking to transferring ownership to an individual and 27 % to a partnership. The wealthy have looked up to London as the safest haven in the globe against geopolitical uprisings and economic crises have become rampant, this suggests that geopolitical and security concerns are the largest factors to key in positive impacts to those who are planning to buy or rent property in London.

Knight Frank said that an increase of 9.4 % in the UK market was recorded over the 12 months till August, but was tainted by a slowing increase rate.

According to Arabian Business, annual price increase was recorded at 12 % in November last year, but has remained down to 10 % over the half year. “With international buyers representing an increasingly significant source of request in the market, we asked respondents which nationalities they thought would become extra prevalent. The majority frequently mentioned were buyers from Russia and the CIS, China, Middle East, France, India and Africa,” the statement said, as quoted by the business website.

Adding that, “Looking to the next, our view is that price trends are likely to remain fairly subdued over the next 12 to 18 months. We have set our estimate for zero % increase in 2013, with a return to positive increase from 2014 and beyond.”