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Al Mazaya’s report also emphasised the
fact that British investments abroad,
whether in the fields of real estate,
industry or hotels, would be safe and
their growth and value will continue
to increase, as they are closely
associated with the developments of
the economies of the host countries.
A possible positive impact of the
Brexit decision is the expectation of
an increase in out-bound tourism by
British nationals, over the coming
short period. On the other hand, British
investments in Britain, regardless of
their nature and concentration, will
go through a trial in terms of value,
attractiveness, return rates and the
possibility of investor withdrawals
looking to cut ties with the least losses.
Al Mazaya’s report has ruled out the
possibility that foreign real estate
investments may undergo liquidation over
the coming period, as a direct reaction to
the Brexit decision, and expectations are
that the appetite for investment will remain
strong. The core factor in this equation is
that the volume of investments pumped
into the British economy will go through
a state of confusion over the coming
period, until the UK enters into new
deals with the EU countries and a clear
vision for a post-EU status is identified.
The real estate sector, just like other
industry verticals, will go through a state
of stagnancy due to an unwillingness of
stakeholders to be vulnerable to risks
through sales or purchases. It is worth
mentioning, however, that prices of real
estate prior to the Brexit decision were
considered high and the inclination to
adjustment was expected – regardless of
the decision taken by the UK electorate.
Qatar is considered among the largest
investors in the British economy,
particularly in luxury real estate, which
is a distinguishing factor of Qatari
investments in Britain. These substantial
investments were mainly motivated
by the characteristics of the British
economy as a safe investment haven
with the ability to withstand financial
crises faced by the global economy. That
said: Anglo-Qatari relations are stable in
almost all area and contracts between
the two sides in relation to oil and gas
sectors are long-term. Therefore, a Brexit
decision will not have considerable effect
on bi-lateral and economic relations
between the two countries, on the whole.
Mazaya Monthly Real Estate Report -
Week 1 - July 2016