Nomo Bank’s latest research reveals a significant rise in GCC interest in UK property. With regional markets outperforming London, Manchester is offering international investors a more compelling balance of rental income and long-term capital growth.
Interest in UK residential property among Gulf Cooperation Council (GCC) investors is gathering momentum, with new research from Nomo Bank revealing the highest level of search activity since its tracking began in December 2024.
According to Nomo’s latest Property Pulse findings, searches for UK residential property from GCC countries increased by 48% in Q2 2026 compared with Q1, signalling renewed interest in the UK as a destination for international property investment.
But while London continues to attract attention, the latest market forecasts suggest investors looking beyond the capital could find compelling opportunities elsewhere in the UK, particularly in Manchester, where comparatively attractive rental yields and strong projected capital growth are bringing the city firmly into focus. Read our blog on Manchester’s capital growth outpacing the rest of the UK.
GCC investors are looking towards the UK
Nomo Bank’s research provides a timely insight into international investor sentiment, with demand rising across the Gulf.
The UAE accounted for 57% of searches for UK residential property during Q2, an increase of 10% compared with the previous quarter. Qatar represented 16%, followed by Saudi Arabia at 12%, Kuwait at 10%, Bahrain at 3% and Oman at 2%.
Westminster, London remained the most searched location, accounting for 6.5% of searches. However, Salford (bordering Manchester city centre) and Edinburgh followed closely, each representing 3.8% of search activity.
The findings suggest that, although London remains an established destination for overseas buyers, interest is not confined to the capital and GCC investors are eyeing the ‘Capital of the North’ for stronger returns. Nomo also identified the wider North West as a region offering the affordability, rental demand and yields sought by many overseas buy-to-let investors.
For GCC investors seeking to diversify their portfolios, this presents an important opportunity to look beyond traditional property hotspots and consider where the fundamentals may be strongest.
Source: Nomo Bank Property Pulse research, as reported by The Intermediary.
Manchester vs London: What do the forecasts say?
London has long held an appeal for international property investors, supported by its global reputation, lifestyle proposition and international tenant base. However, prestige alone does not necessarily translate into the strongest investment performance.
Savills’ revised mainstream residential forecast, published in June 2026, highlights a significant difference in projected house-price growth between London and the North West.
| Savills forecast to 2030 | London | North West |
| Projected growth in 2026 | -4.0% | 0.0% |
| Projected growth in 2027 | +1.0% | +3.5% |
| Five-year cumulative growth to 2030 | +10.6% | +25.0% |
Source: Savills, June 2026. These are regional mainstream house-price forecasts, not guaranteed returns or forecasts for individual developments.
The North West’s projected 25% growth compares with 10.6% for London — more than twice the forecast cumulative appreciation. Savills also expects London prices to fall in 2026 before returning to growth, while the North West is forecast to remain stable before stronger annual growth from 2027 onwards.
For investors with a longer-term horizon, these projections reinforce the importance of considering regional markets where affordability, economic activity and housing demand may support future growth.
Of course, regional forecasts are not a substitute for assessing an individual property. Location within a city, purchase price, property quality, rental demand and the local supply pipeline all influence an investment’s potential performance.
Rental income: Another reason to look beyond London
Capital appreciation is only one part of the investment equation. For buy-to-let investors, rental income and the ability to sustain tenant demand are equally important.
Prime central London property can command substantial rents, but purchase prices are also significantly higher relative to the income generated. This can result in lower gross rental yields than those available in regional cities such as Manchester and Birmingham.
Indicative gross yields of approximately 2–3% are often associated with higher-value London residential property, while selected Manchester investment apartments typically offer yields in the region of 6–7% or more, depending on the development and unit. Our latest Manchester investment opportunity, Vita Living Circle Square, achieves average rental yields of 7.5%, with some apartments yielding 8.2%.
The difference can be significant. On a hypothetical £300,000 investment, a 3% gross yield would generate £9,000 in annual rent, compared with £22,500 at a 7.5% yield, before service charge.
These figures are illustrative rather than market-wide averages. Actual returns depend on the property, achievable rent, purchase costs, management fees, service charges, void periods and other expenses.
For investors seeking both rental income and potential capital growth, Manchester can therefore present a compelling proposition: a lower entry price than many comparable London locations, the potential for stronger income returns and a regional market with encouraging long-term forecasts.
Why location within Manchester matters
Choosing Manchester over London is only the first decision. The next is identifying the right location within Manchester itself.
Not every development in a high-growth city offers the same investment fundamentals. Investors should look within the city itself to consider connectivity, employment, universities, local amenities, tenant demand and the quality of the surrounding neighbourhood.
Prime city-centre locations can offer a particularly attractive combination of accessibility and lifestyle appeal, serving professionals, graduates and students who want to live close to employment hubs, universities, transport links and the city’s amenities.
Manchester’s M1 postcode places investors in the heart of the city, with access to major employment centres, universities, transport connections and a thriving city-centre lifestyle. Paired with an exceptional resident proposition and amenities, Vita Living Circle Square is achieving almost double the average rental returns of the wider Manchester market.
For international investors who cannot oversee a property themselves, or UK-based investors who may not want to manage the property themselves, the quality of the development and the expertise behind its management are also important considerations. A well-located property supported by professional letting and ongoing management can help simplify ownership from overseas.
This is where a location-led investment strategy matters more than simply choosing a city that appears in a market forecast.
Manchester’s universities: An investment opportunity for families and landlords
Home to five universities including Russell Group, the University of Manchester, and a thriving international student population, Manchester is a natural choice for GCC families looking to combine their child’s UK education with a longer-term property investment.
Purchasing a residential apartment close to their university can provide a home throughout their studies, with the potential to retain the property for their child’s use after graduation, generate rental income or sell in the future. For families thinking beyond the immediate cost of accommodation, this offers an opportunity to align their child’s education with a tangible, long-term asset. Watch our podcast for GCC investors considering buying UK property for their child’s university studies.
Manchester’s universities are equally valuable for investors buying purely for rental income. The city’s substantial student population creates an established pool of potential tenants, while its strong graduate retention rate, with around half of graduates staying in the region, supports continued demand from young professionals entering the workforce.
With five universities, a growing employment market and an attractive city-centre lifestyle, Manchester draws renters at different stages of their lives, helping investors access a broader potential tenant pool beyond students alone. While occupancy and returns are never guaranteed, this diversity of demand is an important consideration when choosing a location for a long-term buy-to-let investment. Across our four operational Affinity Living buildings in Manchester, an average occupancy of 99% is achieved, with 0 units currently vacant.
A renewed opportunity for GCC investors
The latest Nomo findings are consistent with what we are seeing at Select Property, where interest and transactions from GCC investors are on the rise in Q3.
For investors across the UAE, Saudi Arabia, Kuwait, Qatar, Bahrain and Oman, UK property continues to offer an opportunity to diversify internationally, generate rental income in sterling and gain exposure to established regional cities while investing within a robust legal framework.
Manchester stands out for its combination of a substantial urban economy, universities, employment opportunities and a residential market supported by a diverse tenant base. Its long-term capital-growth outlook, as reflected in Savills’ forecasts, adds another dimension to its appeal.
However, successful investing is not simply about following demand. It requires careful consideration of the asset, the location, the purchase price, the projected income and the support available throughout ownership.
At Select Property, we have spent more than two decades developing, selling and managing UK property investments, with a focus on established regional markets specialising in Manchester. Our flagship development, One Port Street, is strategically located in Manchester’s iconic Northern Quarter and is the product of decades of refining our resident proposition in the city centre. Our approach combines local market knowledge with carefully selected developments and support across the property investment lifecycle.
For GCC investors reassessing where their next UK property investment should be, the question may no longer be simply whether to invest in the UK, but where the strongest balance of income potential, location and long-term growth can be found.
As demand rises and regional forecasts point towards stronger growth in the North West, Manchester deserves serious consideration.
Explore UK property investment opportunities with Select Property and discover how the right location can help support your long-term investment objectives.
From our offices in Dubai and Saudi Arabia, we have over 20 years of experience supporting GCC investors to diversify their investments with UK property.