After nearly half a decade of Brexit uncertainty, low interest rates, back-to-back elections, and ever-changing tax laws, luxury real estate investors can be forgiven for showing hesitation about the London market.
Now, there is another obstacle lying between international buyers and London’s prime residential real estate: the inability to conduct viewings due to pandemic-related travel restrictions.
But despite all the setbacks—and there have been many—there is a case to be made for London’s resiliency.
“Despite everything, London is still a global city—one of the very few,” said Ed Lewis, head of London residential development at Savills. “International buyers have always been an incredibly important part of the London market, and part of the London scene.”
It may not happen overnight, but when the world’s wealthiest investors come back to the property markets, London will be well-situated for a rebound, especially compared to other gateway cities.
The British capital, like many cities around the world, is just starting to recover from the effects of the pandemic-induced lockdown.
But, according to Tom Bill, Head of U.K. Residential research at Knight Frank, the problem for London is “not just eight weeks of lockdown, but four to five years of uncertainty around Brexit, an ever-shifting tax landscape, and tighter lending conditions.”
The combination of these factors has kept London’s luxury real estate