Current London Real Estate Overview

2018-04-16

What Brexit?!

Below are several issues which illustrate the resiliency of the London property market to the Brexit vote.

Real estate prices

According to the Investment Property Databank, an independent organization which collects data on real estate performance, UK real estate prices appear to have made a sustained recovery after a 4% fall immediately after the Brexit vote.

Property fund share prices

Another way to look at real estate market price levels is by looking at share prices of real estate funds, such as Shaftesbury PLC, which invests in central London real estate, similar to Consulco.

 

Sterling exchange rate

The sterling has recovered around 2/3’s of the value it lost against the dollar post-Brexit vote. This demonstrates the resilience of the UK economy, the cyclical nature of economies in general and exchange rates in particular.

The sterling still remains relatively cheap for USD and EURO investors, as compared to pre-Brexit rates.

 sterling exchange rate

Brexit did not change the fundamental attractions of London as a tourist destination.

London is the #2 tourist destination city in the world, receiving 20 million tourists in 2017, a 3.4% increase from 2016, according to the World Travel and Tourism Organisation. It is also the #3 tourist destination in the world in terms of visitor spending, racking up $16 billion in visitor spending in 2016, with 46% of that spent on shopping, according to the Mastercard Global Destination Index.

Rent review

Average annualized rental uplift of 6.08% over the past 6 years – this is the actual realized rent uplift achieved by Consulco for the properties under our management.

These convincing numbers illustrate the prudency of our investment strategy, focused on retail and restaurant properties in central, popular and fashionable areas, favored by tourists.

 

We invite you to read more about our current investment opportunity, SPARTA 

Sparta fund - Consulco

 

For further information please do not hesitate to contact us at: info@consulco.com


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