The UK has been an attractive market for Asian investors for many years. Property and businesses remain the most popular investments, with billions of pounds invested by the Asian market.
So, why is the UK a popular choice for Asian investors and what visa requirements do they need to be aware of?
Why the UK is a popular investment with Asian markets
Asian markets have only recently started to bump up their investment into the UK. Statistics show that from January to August in 2019, Chinese investors brought $8.3 billion into the UK. When you compare that to $6.1 billion investment brought in for the entire year in 2018, you get an idea of how quickly the market is growing.
One of the reasons investments are booming right now is because of Brexit. The weakening of the Great British Pound has been seen as attractive to Asian investors.
The property market here also attracts Korean and Singaporean investors. In 2018, £10 billion was spent on the UK property market by Asian investors.
There are a lot of benefits for Asian investors in the UK market, but there are also a lot of challenges. Visas remain the most challenging part of investing in the country.
Understanding visa requirements
In order to invest in the UK, a Tier 1 investor visa will be required. In order to be eligible for this visa, investors need to have at least £2 million to put into the economy. They also need to have a regulated UK bank account.
Those who already hold a Tier 4 general visa can apply for the Tier 1 investor visa. However, if your living costs and course fees were paid by the government or an international scholarship agency, you will need an unconditional agreement in writing from the financial sponsor.
Visa applications can be complex so it’s a good idea to seek advice from the professionals. You’ll find immigration lawyers can take you through the process, ensuring you have everything you need to get accepted.
What challenges do they face?
Although the weakening of the pound has encouraged more Asian investments in the UK, there are some challenges investors face.
The current interest rates for example, make it difficult to see much of a return. With the current economic crisis, interest rates remain low, making it a little harder for investors to make good profits. It could take a long time for the economy to recover, particularly if there is a second Covid-19 wave. So, there is an extra level of risk to investing in the UK right now.
At the moment, nobody knows what is going to happen in regard to Brexit. If we leave the EU with no deal, it could also hit investors hard. So, it would be wise for investors to wait and see what happens later in the year before they decide whether or not to invest.
Overall, the UK has long been an attractive option for Asian investors. However, due to the current economic climate, there are challenges that need to be addressed for those who are looking to invest in the country.