UK remains attractive opportunity but London appeal fading
Gulf high-net-worth investors continue to be drawn to the UK property market, with a survey of 150 of them showing they each plan to commit an average of £78.3m to UK property over the next five years. The planned spend rises to £147.3m for those with £500m.
The research comes from the fourth annual GCC Investment Barometer from AlRayan Bank, conducted among investors in Saudi Arabia, Qatar and the UAE with at least £10 million in wealth and/or assets.
However, where they invest is changing. One in three had invested in London in the past year, ahead of Singapore at 24%, and Paris and New York both at 23%, but only one in five (21%) plan to invest in the capital over the next 12 months, down from 23% last year. Instead, of those planning new UK investment, 34% are considering Liverpool, 27% Birmingham and 25% Manchester.
Of those surveyed, more than a third (38%) said that Middle East instability is encouraging them to diversify away from the UK, with 32% delaying UK investment. However, 31% also report increasing their UK allocation and 30% are accelerating planned investment.
Relocation also remains attractive
A higher proportion of investors are also considering a move to the UK, or want to retain the option, with the share growing from 45% last year to 58% this year.
89% say stronger opportunities in their domestic markets are increasing their UK investment appetite, while 57% cite income generated at home as capital they can reinvest overseas.
Maisam Fazal, chief commercial officer at AlRayan Bank UK, said: “GCC investors have more choice than ever over where they put their capital, so the continued strength of commitment to the UK is a significant indicator of confidence. Investors see long-term value in the depth of the market, its professional infrastructure and the range of opportunities available.
“However, that position cannot be taken for granted. Investors are increasingly focused on the fundamentals of individual opportunities, and the UK needs to remain commercially attractive if it is to keep converting confidence into investment.”
