Gulf investors lining up to buy property in UK cities, report finds – London Wallet

London is the top global destination for property investment from Gulf states in spite of turbulent market headwinds, according to a new report from the Al Rayan Bank.

The 2023 Gulf Cooperation Council (GCC) Investment Barometer, which surveyed 150 investors from Saudi Arabia, Qatar and the UAE with an average net worth of $208m, found that a third (33%) had bought property in London over the last 12 months – more than any other major global market.

The research also found those investing in London over the period spent more, at an average of $90.8m, with Tokyo ($90.4m) and Zurich ($89.7m​) the next highest.

Almost all (95%) of the respondents had invested in the UK property market over the last five years at an average value of $81.9m. 

The research also found that almost nine in ten (89%) view the UK as a strong investment opportunity, with 85% saying their confidence in the market had increased over the last 12 months​, citing surplus demand, reliable investment returns, strong rental growth and the availability of diverse assets.

The survey found that almost all (93%) of the respondents were planning to make new investments or increase their investments over the next five years, with many looking to invest across the UK’s regions.

Liverpool (34%), Manchester (34%), Birmingham (26%), Brighton (23%) and Newcastle (19%) are the top five destinations outside of London (56%), according to the research.

Of those planning to invest in London, more than half (55%) are targeting central London, with east London (32%) the next most popular area.​

The types of property respondents are planning to invest in within the UK are mixed, with 59% considering residential apartments, 52% looking at commercial office space and 49% seeking residential housing​.

Sustainability is also a growing consideration for investors, with 58% of respondents stating access to green investments makes London an attractive investment target.

Giles Cunningham, CEO at Al Rayan Bank, said: “The GCC barometer has unveiled an encouraging picture for the property market across the UK. Investors are also becoming more aware of the real estate opportunities across the regions, which are proving increasingly attractive as regeneration projects accelerate.”