(MENAFN- Muscat Daily) With the Omani rial pegged to the US dollar and performing strongly investment in European property is expected to rise markedly according to real-estate consultancy Cluttons. And with European Union economies continuing to feel the impact of the financial crisis property markets in the bloc countries seem to have bottomed out.
Faisal Durrani Cluttons' international research manager said 'There is no doubt that the performance of the US dollar has unlocked the door for a significant potential upturn in cross-border property investment. The weakness of the euro means that rial-buyers are now about 23 per cent richer than this time last year in euro-terms. This clearly makes an EU-based property investment particularly attractive.
'With most GCC states maintaining a fixed peg to the US dollar they are all well-positioned to leverage this tremendous currency advantage that does not look set to weaken in the short term especially as the Greek financial saga lingers.'
Joanna Leverett head of international residential agency said 'We know through our research that property is always a favourite investment asset class amongst the world's wealthy and London along with other key European capitals consistently features on top of property investment hotspot lists.'
Our new office in Andalucia in southern Spain has been a run-away success. British buyers in particular have been quick to sense the bottoming out of the Spanish property market and with sterling retaining its edge over the euro UK buyers are rapidly snapping up second homes across the sun-drenched Spanish coast. And this is a pattern we are seeing echoed across southern Europe. The rich Islamic heritage of southern Spain is likely to add to the overall appeal to GCC buyers.'
Cluttons also believes that the surprise result in the UK general election means that the country is set to enjoy an extended period of economic stability and growth while the continuity of the governing Conservative Party is expected to eliminate any anxieties surrounding previous worries of a hung parliament.
'The threat of a coalition government that excluded the Conservatives and one that planned to undermine the housing policies introduced under David Cameron has now dissipated much to the delight of the investment community. We can now safely say that the risk of an annual 'Mansion Tax' aimed at properties valued at over £2mn has completely dissipated. The 'Mansion Tax' really would have been a tax on London and the South East where almost 90 per cent of the UK's £2mn-plus properties are concentrated' said Leverett.
The other policy being touted before the election was a potential rent cap but this has also quickly faded. The disadvantage for the UK from a restrictive rent cap would be the undermining of its private rented sector which is currently driving substantial capital inflows from overseas not only into London but up and down the country.
Durrani added 'The London housing market is now poised to come out of a holding pattern that stalled growth in the lead up to one of the most closely contested elections in recent history.'
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