• Understanding the nature of real estate investment flows: CIS countries

    Investment Info

    real estate investment flowsOver the past 15-years old there is a trend of significant investments in real estate of Great Britain capital from CIS investors. Since the 90s investors from Russia and CIS took the 5th place among the total mass of real estate buyers in London. So why real estate prices in London attract such interest among CIS residents? What are the payback prospects and what projections are expected in real estate market in the coming years?

    The situation in the real estate market in London: the cost to date and the prospects for profits The fundamental motive that prompts CIS residents to pour their capital in housing is, first of all, the profitability of such investments. The fact that the London market of immovable property is not stagnating even during tough times, remaining stable even to the general decline in the value of housing across the country in the post-crisis years of 2010-2012. The property in the capital of the United Kingdom not only does not fall in its price, but increases. Thus, the maximum peak of prices for real estate was observed in 2007-2008, characterised by the highest dynamics of sales of real estate in London, housing prices, interest from buyers and increased rents. However, now in 2016 the figures exceeded the cost of housing in 2007-2008 by as much as 9% already. If we analyse the situation across the country, the cost of residential properties in the capital has gone 2 times higher. The total cost not always includes conveyance solicitors services, which may account for another 1 - 2%.

    Property in London, according to statistics compiled by Knight Frank will go further by 7% in 2016, if we take the average statistical and housing areas. More prestigious objects and luxury apartments in respectable areas of London will experience an annual increase of 12% or even higher. From this it follows that our CIS residents investing in particular residential facilities will be able to gain large sums from resales. The owners, not seeking to sell their houses and apartments, make profits from renting space for rent, but that is a rare case. So, in the Eastern and industrial areas, as well as the suburbs of London, the increase in price of property can range from 2 to 5% for 2015, in central London, these figures may be as high as 15% per year.

    In view of the prevailing trends CIS citizens are increasingly resorting to acquire property in the capital. Statistics compiled for 2014 by the same analysts from Knight Frank, is eloquent: real estate objects in London priced at under £2 million are largely acquired by CIS residents bought up, and they occupy a leading place among all those who have made a deal, surpassing the Asian and Arab investors. Russian investors took the 5th place among all the nationalities, who have concluded the contract on the purchase of property in London, outnumbering Chinese and the Arab buyers. 85% of the total number of transactions conducted in 2013 on the sale of apartments in the exclusive central London - City of London, were made by investors from Russia and CIS countries. Approximately 35% of the population of the Eastern districts of London, where budget accommodation is located, priced at £150,000, were primarily purchased by the member of CIS diaspora.

    Facts speak eloquently for themselves. In turn, the British government is actively promoting the opportunities in the acquisition of housing in the capital, creating different subsidiary programs, for example, ‘Buy a house’, as well as giving the opportunity to take a mortgage loan on a property in London, even for non-residents.

  • Student property for sale: what you should know about the UK market

    UK Real estate market

    student-propertyOf course, the largest selection of student property is concentrated in London. There are 18 special complexes - Purpose Built Student Housing - cottage settlements providing such infrastructure. They are scattered throughout the city, and new construction is concentrated in the 1st and 2nd zones.

    Britain is good that the best universities are located not only in the capital - a huge number of educational institutions from around the world is located in other cities. For example, in Manchester and Sheffield the University of Manchester and Sheffield Hallam University are rated 2nd and 3rd most attended institutions after London Open University. Almost every major city in England has a decent university, and the choice of locations is quite diverse. In addition to these locations, as well as the world famous Oxford and Cambridge, this type of facilities is available to investors in Liverpool, Nottingham, Canterbury, Plymouth, Leeds, Liverpool, Bristol, Newcastle, Birmingham and many other cities.

    The price aspect Such a variety of locations provide a wide range of opportunities for domestic and international investors, so while in London the price of such objects can easily go beyond £150,000 mark, in other cities the average cost of student housing is estimated at £50,000 - £60,000. The cheapest offer, found on the market today, starts from £32,000. It was a room of 15 square meters. with a bed, desk, TV, wardrobe, shower, toilet and shared kitchen. The apartment, sold out as for now, is located in a residential complex with a gym and relaxation area. This way or the other, you should add around £1,000 - £3,000 payment for conveyance solicitors and real estate agencies services.

    Some experts mention even starting sums as low as £25,000. This is where much depends not only on the city, but also on real estate itself. If this is a tiny studio or room in a long-established and somewhat outdated design, of course, it will be cheaper. Objects of the same area in the new ultra-modern units are quite expensive, although you may want to located in rebuilt buildings, previously used for other purposes, the price may be slightly lower (though not always). Also, the cost depends on the type of accommodation. You can buy a simple student apartment - modernly equipped rooms with a shower and toilet but with a shared kitchen, they will be much cheaper, and you can also make a choice in favour of improved student apartments - more comfortable and spacious, as well as some studio apartments in new buildings, which tend to be more expensive. In addition, the proximity to the educational institution is also crucial - the more remote it is, the cheaper it will be.

    Remarkably, the special student complexes are typically managed by large asset management companies, maintaining strict order and enter into contracts with universities, that is, find tenants, and thus completely eliminating this concern for investors. Moreover, the demand from tenants and income from rental is oftentimes guaranteed by developers themselves.


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