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Investment in UK residential property up 150% despite Brexit
[LONDON] The uncertainties of Britain's departure from the European Union hasn't stopped investors from backing the UK's residential sector.
Total investment volumes in the UK's multifamily sector rose by more than 150 per cent to 6.8 billion euros (S$10.36 billion) in 2018, according to a report by broker JLL. London helped lead the charge, with investment volume nearly doubling to two billion euros compared to 2017.
That helped the UK capital rise to become the fourth-biggest European city for multifamily investment, behind Berlin, Copenhagen and Paris.
Investment in European multifamily properties rose by 40 per cent to 56 billion euros in 2018. The market has proved popular among investors because of the stable cash flow from such buildings and a shortage of supply in Europe's top-tier cities.
Still, the UK's charge may be shortlived as the uncertainty around Brexit continues to mushroom.
"Given the lack of progress with Brexit, some foreign investors have become more cautious when considering a market entrance," JLL's Simon Scott said in the report.