Is Istanbul the new alternative to London for investors from Arab countries?
Istanbul is becoming a shining star for foreign property investors, Arabs to be in the first place as reported by several reliable survey companies.
Traditionally London of UK is known as the city to enjoy strongest interest from property investors on the global scale. This has been true for many years for wealthy Arabs since a long while ago and until after the Brexit vote which has introduced Istanbul as an alternative attraction center likely to get a much bigger share of the real estate cake in question.
The reports show real estate investors are in a hurry to sell portfolio properties in London, which could be a true opportunity for Turkish building contractors. Experts say this may be because Istanbul is considered to be the best alternative to London by Arab property buyers.
London has been a safe haven for Arab investors for many years and the advantages thus benefited by the British economy, have also been substantial. After the Brexit however it is understood that it may be rather difficult for London to maintain said supreme position as Arab investors are reported to be selling off their real estate properties in the city. The worst part for London is that these investors are known to be the top players of withdrawal from the British real estate sector.
If the situation worsens office prices in London might see a 20 percent drop within three years after leaving the EU which would certainly make investors very unhappy. That is why investors are said to rapidly withdraw their money from British real estate funds, experts comment.
Just to remind said funds had experienced a similar shock during the 2007 and 2008 crises and had to stop transactions which had led to a 40 percent fall in real estate prices in the U.K. at the time.