With the introduction of the new
3% SDLT band for buy-to-let investors – effective from 1
April, attention is now turning to the impact for UK property
prices of British exit from the European Union –
"Brexit" to be decided by referendum in the UK on 23 June
Whilst there is much talk of doom
and gloom in the UK real estate market, with the introduction of
the new 3% buy to let SDLT band and the change to SDLT on
commercial property – others see UK property as an
opportunity, particularly for Middle East based
Cluttons' expectation following their
Middle East Private Capital Survey 2016 is that most buyers will
take a long term view of the market as many perceive the 3%
increase in the SDLT rate a small price to pay for securing a
London asset. They feel that the sentiment very much remains
that most investors would still rather be a buyer than a
Continued geopolitical unrest and low oil
prices, which have tumbled by 60% over the last two years, are
driving Middle Eastern investors towards property assets, with the
UK a firm favourite.
Fasi Moussalli, Head of JLL's MENA
group also highlights the impact of the weaker pound "Recent
currency movements have given this purchasing trend additional
impetus, as the British pound is at a seven-year low against the US
Dollar, to which most Gulf currencies are pegged".
In Cluttons' Survey, they found that
three in five respondents claimed that they would most likely
invest in their top target city in 2016. Of those top target
cities London was the most preferred global investment choice.
When questioned, the UAE HNWIs surveyed
in the Cluttons study stated that 50% are expecting to target
residential property, 22% favour the commercial sector and 28% are
expecting to target a mixture of both.
JLL's Moussalli agrees
"With demand for London properties heating up, these
investors are now also willing to consider residential property in
Northern England, especially where reasonable yields can be tied to
good capital returns. A property yielding 5-6 percent per annum,
and appreciating by 10-12 percent annually, will be very attractive
to an investor – especially when you consider returns for
comparable London properties will be half that".
JLL also see the likely slowdown in the
market's pace caused by the uncertainty created by Brexit as a
buying opportunity. JLL's Moussalli says "We see
Middle Eastern investors increasingly willing to take on more risk
in their purchasing decisions, and many don't see Brexit as
cause for concern".
Once Brexit is behind us, Cluttons
expect to see the residential market pick up pace, with activity
rising over the next 5 years helping to deliver cumulative growth
of about 19% over the next 5 years.
Both JLL and Cluttons see increased
interest in UK commercial property. Cluttons state that this
appeal in demonstrable in the £3.8 billion of commercial
property assets purchased by Middle Eastern investors in 2015
alone. Highlights include the £300m acquisition of the
Liverpool One shopping centre by Abu Dhabi Investment
JLL are seeing Middle Eastern
investors showing interest in the sub-institutional range of high
yielding assets valued at less than £35m. "In
short, they are seeking long-term, stable properties with good
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The process for obtaining planning permission for development of property in the Cayman Islands has been updated as a result of the latest revision of the Development and Planning Law and accompanying regulations (July 2015).
In principle, when the parties agree to arbitrate, they shall be
bound by that agreement. It should therefore follow that when a
party initiates arbitration proceedings, the other party - the
respondent – will avail itself of the opportunity to present
its case and participate in the proceedings.
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