UK Real Estate

Investment decision in UK Real Estate

Investment decision in UK Real Estate

Introduction

The real estate industry of United Kingdom suffered significantly in late 1990s with increasing in the house prices much faster than the earning and the average age of the home buyer. However, as we are aware of the property prices dramatically raise between 1998 and 2007 which produce huge gain in the home equity for many investors nevertheless, this created and unaffordable housing for many people. Majority of the countries faced sharp boost in house prices in the beginning of the new millennium, but the UK situation was different. Firstly, the price of property increases earlier and experienced a sustainable prices increase. Secondly the regional pattern was unfairly informed.

Hence, the property prices in 2002 to 2007 increases by 90% which was much faster than any Euro-zone nation excluding Spain. In these situations, those investors and companies were benefited very much who had invested their money in real estate in early 1990s.

Discussion

In late 2008, UK property market show decline in prices. However, the property prices in the UK expected to fall by 2% as estimated by RICS, an international association of professional's real estate. At least during the first half of 2011, the average housing prices will continue to fall in coming months, due to the decline in supply have resulted in stabilize the market before July, with prices that could start increasing during the latter part of the year. London and South East, however, should follow a positive trend in real estate prices (www.nabarro.com/).

The falling prices in property can exceed to 4% depending on the result of consistent cutting in public spending and this would result in high unemployment and a decline in the interest from buyers. However, professionals rely on the low supply of goods for sale which should provide cushion in reducing prices. In terms of sales volume, RICS expects about 900,000 transactions with access to mortgage financing continue to be the cornerstone of market activity, and a decline in foreclosures from 36 000 in 2010 to 33 000 in 2011(www.propertywire.com).

Looking at these seniors it is beneficial for the NGPF to go for Real Estate Investment Trust. This is a real estate investment company who manage and invest other people funds in profitable investment place. REIT offers variety of advantages to their investors. REITs, which have provided a dynamic international real estate funds, and hence provide direct exposure to the housing market, with a high degree of liquidity and transparency (www.imf.org).

For experts within UK, the property market rent is possibly the most attractive, especially in cities like Paris and London. Several managers are highlighting the potential of the other countries. In order to invest internationally, REIT generates many opportunities such as expanding the scope of identifying and capturing global real estate opportunities, diversification of risk through the proper choice of some markets correlated and the stabilization of the cycle having real estate investments in various stages of the cycle ...