Investment in the UK Real Estate Market

By Alan A. Samson and Richard Wilkinson

Relative to other classes of investment, real estate in the UK remains strong and continues to outperform equities. At the end of 2001, unleveraged returns were circa 7%. As equity markets continue their decline and interest rates remain low, the UK real estate market remains a sound and popular destination for U.S.investment.

Contributing factors:

London's position as Europe's premier financial centre

High levels of liquidity

Strict planning controls and building standards which help minimize the risks of falling capital values

Relatively low taxation and the exemption of foreign investors ...