2020 is clearly a year that will live long in the memory as well as in the history books. There are a million ways to describe the previous year but we keep coming back to one word in particular, surprising. Whatever anyone may tell you they knew, or thought they knew, you would be hard pressed to find anyone who could have predicted the events of 2020 before they happened.

While predicting the property market can also prove to be a difficult task, experts and economists alike have spent years doing just that and so, even in this unpredictable world, there is still more than a good enough reason to listen to what they have to say. This article has been put together in order to take a look at how the world’s currencies are expected to behave in the coming year and the impact this will have on overseas property investment and international money transfer in 2021. So, without further ado, let’s get started…

A Resilient Force

While it may come as a surprise to many, investors have a lot to be optimistic regarding property investment in 2021. It is no surprise that the manufacturing of effective vaccines has resulted in a positive outlook for both global economies on the whole and investors in general. Despite the property market essentially shutting down when the pandemic first began, it would be incorrect to say that interest ever diminished. In fact, it some ways, we have witnessed the opposite via an increased interest in certain areas.

The previous year has seen more and more people working from home as well as just spending time there, something which many predict will lead to a permanent change for the foreseeable future. This has, in essence, changed how people view property, both in terms of how they want to use it and where they want it to be located. For example, there is been a spike in demand for homes that have gardens, are detached, those that have a suitable work from home office space on-site and those that are said to be rural and/or secluded.

While many things changed in a very short amount of time, the fact remains that property is a fantastic investment. If we have learnt anything from previous recessions, the property market is incredibly resilient. Yes, the market did naturally drop off in 2020 as result of the global pandemic, however, we fully expect the overseas property market to bolster once again in 2021.
The Sweet Spot

The last year has certainly led to an overall reduction in the price of property and while this could easily be looked upon with a glass half empty approach, investors have been waiting in the wings. As we have established, the market is resilient, and while this doesn’t mean that the sector never experiences a downturn, its resilience can in part be put down to the fact that it is cyclical and therefore, it will bounce back.

There comes a time when the property market enters what is often referred to as the sweet spot. This is when investors vacate their position in the wings and relocate to the front and centre. A dip in the market always results in a point when the average price of property proves to be too good of an opportunity to miss out on. As the world begins to return to normal, so too will people’s habits, and before we know it, property will be in high demand. Investors will once again enter the market and begin snapping up property in both the United Kingdom and overseas.

The Road Ahead

While many predicted that the British Pound would struggle in 2021 as a result of both the pandemic and the conclusion of Brexit, there appears to be more light making its way down the tunnel than first expected. At worst, it is believed that the GBP/USD will remain at the current level and with a weaker US Dollar looking likely in 2021, this puts the British Pound in a good position.

Furthermore, the UK management of the vaccine roll-out has been gamering praise from all over the world and is set to allow the Sterling to continue its appreciation against both the Dollar and the Euro. The speedy vaccination of the UK population will allow authorities to open up the country, and therefore the economy, much quicker than the vast majority of other European countries. There is talk of restrictions being lifted as early as June in the UK, which will allow the British Pound to recover much faster than expected, with many predicting a return to pre-Brexit levels before the turn of the year, a prediction that at one point of time would have been laughed away.

What Will a Strong Pound Mean for Overseas Property Investment?

A stronger pound and the arrival of the aforementioned sweet spot in the property market will naturally lead to an increase in overseas property purchases by UK citizens. This, in turn, will also lead to an increase in individuals looking for cheaper options for international transfers as they make their way into the property market.

While we have established the unpredictability of the market as a whole, a similarly strong recovery by the Euro will also see currency transfer take centre stage as Europeans will look to buy property in the UK. In fact, the UK was named the top hotspot for property investment by overseas investors at the beginning of the year!

It is perhaps easier than ever to take a negative view of the world, however, it is always worth you while finding the positives in any situation. We can only hope that this article has allowed for such an event to occur as we look forward to property investment abroad kicking back into full gear in Q2 of 2021!