Brexit Chaos, Rich Indians has sweet Deals in the UK’s market.
As Britain exited the European Union, the property prices in the British capital and other cities have fallen. The prime areas of London have seen 5-7% fall in prices, and the 10% drop will be seen in the next year. Many wealthy Indians who were looking for a great deal in Britain were taking advantage of this market. There is an increase of 15-20% of the number of Indians who were buying property in England.
The mid-sized apartments in London locations such as Liverpool Street, Oxford Street, Bond Street, and Baker Street are getting sold for 1-1.5 euro (Rs 9-14 crore) which is half of what similar-sized apartments cost in Delhi or South Mumbai.
Apartments in cities like Manchester and Birmingham cost no more than those in Pune or Nashik. Foreigners are allowed to have their property in Britain and non-resident can also avail ‘interest-only’ bank funding from British banks, with interest range ranging from 3% to 4%. To acquire property in Britain, many wealthy Indians use Liberalised Remittance Route(LRS).
The currency exchange rates have been favorable for the property buyers in the past six months, and the rupee-sterling swap rate has remained range-bound at 91-93 per pound over the past year. Since August 2018, the rupee has gained close to 2% bringing down asset costs for Indian buyers.