Enabling global property investors to buy without borders

Louisa Finch (pictured), Head of Client Acquisition, Standard Chartered Jersey, explores how global property is becoming an essential part of modern wealth management strategies.

As trade conflicts, geopolitical shifts, technological disruption, inflation and other sources of volatility continue to dominate headlines, for high-net-worth  individuals looking to grow, protect and secure their wealth, one investment alternative offers portfolios a strong hedge against risk: global property.

As a separate asset class, property doesn’t perform in lockstep with stocks or bonds, doesn’t have to be tied to specific sectors or industries and offers novel opportunities for diversification.

Take, for example, geographic diversification: real estate assets spread around the world can help insulate portfolios from unexpected local, domestic or regional turmoil, particularly in stable, highly-developed markets like London.

Thanks to the increased availability of specialised financial partners, cross-border ownership no longer has the same barriers to access. Yet, international real estate remains a largely untapped opportunity among even some of the savviest investors.

From long-term capital appreciation, high-yield rental income and asset protection, to lifestyle considerations like providing safe housing for a child who plans to study overseas, Standard Chartered Jersey is seeing a growing number of investors exploring the real estate investment space – and is providing the solutions to support those aspirations.

Drivers

When it comes to the drivers for property investment, diversification and wealth accumulation are important – but they are not the only factors to consider.

Investors looking for a steady income can also stand to benefit, particularly in markets where there’s a persistent demand for rental properties. Buy-to-let income is a useful avenue for investors looking for a regular income over a period of time with an asset that history dictates it will grow in terms of appreciation.

And it isn’t difficult to gain an attractive yield in a market like the UK, where, on average, about 12 renters are currently chasing each home for rent, amid an easing of supply-demand imbalance.

Access to key markets

The UK has long been a top real estate destination among the high-net-worth community, with purchases by foreign investors totalling £50 billion since the start of 2022.

It’s a well-known market, especially with international investors. The UK boasts political stability, a strong rule of law and an open-door policy for foreign investment. Thanks in part to those solid fundamentals, the country’s stable and resilient real estate market has remained popular among overseas investors. But expanding property holdings in the UK is reliant on finding a reliable banking partner to help make the investment. And Standard Chartered Jersey stands ready to answer that call.

Supporting unique wealth needs

Investors from Hong Kong have traditionally been big buyers of real estate in the UK, but our team in Jersey is also seeing investors from across other parts of Asia, as well as Africa and the Middle East, exploring the market.

To meet their needs, Standard Chartered has established specialist wealth advisory hubs in Hong Kong, Singapore and the United Arab Emirates, as well as Jersey.

The Jersey office focuses on investors placing Assets under Management above $200,000 with a lot of the Bank’s clients making up the fast-growing ’emerging affluent’ class – those who have gained their wealth either by starting a business or by inheriting part of a generational wealth transfer that’s projected to total an $18 trillion over the next five years. The team in Jersey is focused on guiding those clients throughout their life journeys.

In addition, catering to a significant and growing segment of Middle East investors, the Bank is also able to offer Shariah-compliant financing services through Jersey, overseen by a supervisory committee.

Critically, our local team is also able to tap into an extensive, strong network across 53 markets globally, whilst also having a really good understanding of the UK market.

Considered a safe harbour with robust regulation, strategic benefits, global access and a convenient geographical location, serving as a logical hub for investment to access resources and opportunities both in the UK and around the world, Jersey is increasingly a vital part of investor considerations when it comes to enabling their global real estate investment flows and wealth management requirements.

Thanks to that jurisdictional appeal as well as Standard Chartered’s own extensive network, the Bank’s team in Jersey is citing significant opportunity to support investors’ growing global property investment ambitions, without borders, in the months ahead.

Standard Chartered in Jersey offer a wide range of offshore products and services; which include Private and Priority Banking Services; Credit; Investment Opportunities and Treasury Solutions underpinned by the support of a qualified team of Relationship Managers and Client Advisors. Get in touch today by email or on +44 (0) 1534 704000