Chestertons MENA, a leading international property agency, is showcasing a number of opportunities in London as GCC investors review the capital's long-term prospects, following the UK's June 2016 decision to exit the European Union (EU). With the pound sterling falling to an all-time low against the US dollar, Middle East cash-rich investors have yet another reason to re-evaluate the UK capital's residential market, despite the current uncertainty surrounding the activation of article 50 which will start the two-year countdown for the UK's legal separation from the EU. According to Declan McNaughton, Managing Director UAE, Chestertons MENA the historical resilience of London's residential property market, its enduring popularity and a strong US dollar, are all plus points for prospective GCC investors looking at the UK market. "Essentially London property prices had fallen by as much as 13.47% in the space of two weeks between 23rd June and 7th July 2016. That's a saving of GBP 67,500 (AED327,000) on a property valued at GBP 500,000 (AED2,425,000). However, sterling has since recovered slightly to 1.30 against the greenback. "According to financial website The Economy Forecast Agency (EFA), these exchange rates could prevail through to the end of 2017, with more uncertainty foreseen in 2018 as the UK heads toward Brexit, probably in Q1 2019. This has naturally increased interest from overseas, especially from residents of the GCC, whose currencies are linked to the US dollar. "The London City Island development represents a solid investment over the medium to long term where value and yields will be driven by excellent transport links, an expanding local residential population and the proximity to the global financial centre of Canary Wharf (4 mins)," added McNaughton. London City Island development is currently under construction in the east of the city close to Canning Town tube station, just four minutes away from the financial and commercial hub of Canary Wharf. Covering 12 acres and connected to the mainland via its own bridge, the island community was inspired by urban waterfront communities in Manhattan and Chicago, and will feature a mix of residential, leisure, office, retail and creative industry spaces, delivered in phases and due for completion by 2019. As exclusive sales agents for one of the ten towers within the development, Chestertons MENA will offer apartments starting at GBP 368,000 in Caledonian house which comprises of 1, 2 and 3 bedroom apartments. An attractive payment schedule including just 5% deposit with a further 10% due after 12 months and the balance on completion is being offered by the company. Once completed, London City Island will be home to the English National Ballet and City Island Arts Club, with a mixed-use community comprising 1,706 apartments, 4,502 square meters of office space and 1,852 square meters of retail. Residents will also automatically get membership of the City Island Arts Club, with facilities including a clubhouse, concierge, grocer's shop, gymnasium, spa & treatment rooms, screening room, pools and gardens. The location also has excellent access to major transportation links including the Docklands Light Railway, with central London just 20 minutes away; and is also just minutes' drive to London City Airport, which serves major European destinations. The opening of the new Crossrail link in 2018 will further enhance connectivity to Central London (8 minutes), the West End (13 minutes) and Heathrow International Airport (38 minutes). "In 2015, London demonstrated its popularity with international investors as Chestertons closed property sales worth over AED 610 million on behalf of Middle East investors, London proving to be the most popular market notching sales worth AED265 million, representing over 70% of their total sales of nearly AED 379 million," said McNaughton. Investors from Kuwait topped the GCC list, accounting for 21% of total London sales through Chestertons, followed by Saudi Arabia (17%), Qatar (10%), UAE (10%) and Bahrain (7%). The balance of other buyers was made up of nationals from UK, Switzerland and Iran. Chestertons will be exhibiting at Cityscape Global. — SG
