The UK: A favorite for real estate investment

According to the released data, the number of homes owned by foreigners in the UK is 280 thousand. As of the end of 2023, this figure is expected to reach 300 thousand.

It is estimated that Turks own 10 percent of the homes owned by foreigners in the UK.

According to the London-based real estate consultancy firm Benham & Reeves, the number of homes owned by foreigners in London, one of the world's most popular cities, is over 105 thousand. This figure is also estimated to reach around 110 thousand by the end of the year.

This means that 2.8 percent of the total housing in London belongs to foreigners. It is stated that the total value of homes owned by foreigners has reached 56 billion pounds.

With the trend toward real estate purchases in the UK, Turkish companies are also increasing the number of projects in the country. Following contracting projects, many Turkish companies are making growth plans in countries where the sector is on the rise, including in real estate development investments.

Peker Holding, which has signed over 30 projects abroad to date, is also focused on the UK market, where Turks show great interest in purchasing homes.

Elif Ergu from Oksijen newspaper spoke with Peker Holding London Chairperson Ayşegül Peker about the real estate market in the UK.

Here are the highlights from that interview:

Developing projects in the real estate sector in the UK requires very different procedures. What are the difficulties?

Developing here is a seriously difficult job. One of the biggest challenges is the slow pace of local municipalities, their lack of sufficient staff, and the constant turnover of staff in the bureaucracy, which causes already slow-moving processes to slow down even further. For example, our 73-unit Great Missenden project is currently on hold due to the “suitable, alternative, natural, green” SANG certificate issue. Approximately 148 thousand homes are waiting on this issue.

How is the interest from Turks?

Recently, there has been a lot of demand from Turkish customers. They have difficulty getting a mortgage, so we have created a special model for Turkish investors. We provide lawyers for buying and selling transactions, professional agencies for renting, and payment convenience in Turkey. We have thought of every convenience for Turkish customers. Now is a good time to buy a house in the UK.

What kind of environment is there? On what basis did you say this?

Rental income is also around 5 percent on average in pounds. I can say that nearly half of our projects were sold due to demand from Turks. I can also say that 10 percent of the real estate sold to foreigners across the country is provided by Turks. This places Turkey in the top 5, along with Hong Kong, China, and Singapore. These things I am saying are, of course, about foreign demand. There is also a significant Turkish population living in the UK. The number of registered voters alone is 130 thousand. I can say that this population also approaches known Turkish brands in the country more emotionally.

What would you recommend to Turks who want to own a home in and around London?

Today is a good time to invest in housing in the UK. Many investors see the recently falling prices as an investment opportunity. A rental income of approximately 5 percent annually in sterling also makes these investments more attractive. If you look at London specifically, besides being a global financial center, it is also a center of attraction in many fields such as art, fashion, and education. This shows that the demand for housing will increase in the coming years. In other words, it is possible to say that London is a shining jewel of the global real estate sector.

We are also creating opportunities for Turks who want to own a home in and around London. Turks love London very much. They prefer it both for their children's education and because it is much closer to Turkey compared to the USA. Recently, you frequently witness Turkish being spoken on the streets. We are doing everything we can to turn the dream of owning a home in London into reality for Turkish investors.

Middle-class housing prices in the UK:

London: 516,900

Cambridge: 465,400

Cardiff: 256,500

Edinburgh: 268,000

Glasgow: 142,800

Leeds: 209,900

Leicester: 227,600

Liverpool: 155,700

Manchester: 220,000

Newcastle: 149,200

Nottingham: 202,400

News Source: 12punto