Phone Us

Chinese Investment in UK’s Real Estate will Remain Strong in 2016

China’s buying spree in overseas property is set to continue in 2016 due to increased government support and a growing need for investors to diversify their investments according to a new report.

China’s buying spree in overseas property is set to continue in 2016 due to increased government support and a growing need for investors to diversify their investments according to a new report.

Analysts at Knight Frank predict China’s record-breaking outbound property acquisition in 2015 is set to continue this year. Chinese investors are seeking stable and regulated markets and growing transport infrastructure, making the UK a highly attractive investment destination.


Strengthened geopolitical relationships between China and the international community, in addition to Beijing’s “One Belt One Road” initiative, which aims to improve and create new trading routes as well as expand links and business with other nations, has made Chinese companies eager to look overseas.


In addition to increased policy support, Chinese investors are encouraged to search for opportunities overseas as a means to diversify their investments from an over-supplied domestic housing market.


China’s property inventory rose to 6.2 billion square metres by the end of 2015, an increase in supply which is expected to take up to 5 years to be cleared. Chinese developers are seeking to allocate capital internationally to reduce risk exposure, by investing in countries with growing domestic markets, such as the UK.


According to a new Pinsent Mason report, China has been pouring a significant amount of money into UK’s infrastructure, with the country projected to invest a total of £105 billion in the UK over the next decade.


The UK’s stable and regulated property market, a growing demand for new property and its transport and logistic infrastructure places the UK third out of 144 countries in Pinsent Masons’ investment attractiveness index, and first among all European countries.


Last year, China’s Hualing Industry and Trade Group pledged to invest £1.2 Billion in the UK’s Northern Powerhouse – an initiative to expand transport links across UK’s northern cities and increase public and private infrastructure – building 10,000 new homes and creating 18,000 more jobs.

X
Cookies on our website:
This website uses cookies.
I'm OK with this Cookie Settings ?