A changing world and a changing market.
So what does the future hold? Who would have thought that Trump would be President of the United States? We were shocked on 24 June with the EU referendum result here.
The London property market froze for a while but is beginning to regain some confidence. As the uncertainty increases in other parts of the world, London seems rather attractive.
Our view for 2017 is that there will continue to be a shortage of properties coming on to the market for sale. Those vendors who are willing to sell will be highly motivated, knowing that they must be realistic on pricing and be prepared to negotiate in order to secure a sale. Our experience through 2016 is that those who followed this policy were successful.
We have motivated dollar based buyers taking advantage of the weak pound, saving 15-20% on the historical currency rates and the Chinese are still investing in London (currently saving 11%). Similarly, foreign tenants have greater spending power. The forthcoming elections in Germany and France could cause further ukturmoil within the EU, inevitably endorsing the appeal of London especially for non euro reliant property investors.
For those less sure of their immediate future, renting is the perfect option. The rental market became flooded with property in 2016, but stocks have now reduced and this will help to strengthen rent levels. Brexit fever seems to have calmed down a little and people are renting in the interim while they wait for the political and more importantly the trade agreements to be made between the EU and Britain. Recently refurbished homes are in demand.
Eitan and I have worked at Plaza for 30 years. Unusually, compared to senior heads of department at many agencies, we are still doing what we love and that is being out there selling and letting property.
See the article in the Digitel Edithion of The Residant Magazine online