The continued investment into UK property from GCC investors shows no signs of slowing, as revealed in a new report by Alrayan Bank. Read on to discover what is attracting Gulf nationals to the UK, where they’re investing, and what holds them back.
UK property market continues to deliver for wealthy GCC nationals
Historically, the UK property market has presented immense growth, with property prices increasing consistently over time, rising by an average 95% in the past 20 years alone. Due to this reliable asset increase, global investors are continuing to look to UK property to place their capital.
- The recent base rate reductions by the Bank of England has increased international buyer sentiment, as mortgage rates also drop, making repayments lower.
- According to Alrayan Bank, 97% of surveyed investors have invested in UK property within the past five years.
- 29% plan to invest further in the UK in the next five years
Factors driving UK property investment from the GCC
Two investment goals stand out for GCC investors, those seeking a second home in the UK’s leading cities, and those looking for strong returns on their investment.
- For investors seeking strong yields, their focus is shifting away from the capital, towards cities such as Manchester and Birmingham.
- These cities offer the opportunity for strong rental income on buy-to-let residential property.
- 57% said a reliable return on investment and strong rental growth has increased on their priority list when looking for an investment.
- 44% are drawn to the attractive rental yields and capital growth opportunities.
Looking beyond London for investment
Historically the focus for UK property investment has been London. However, London has seen a shift in its property value, with properties in Westminster dropping by 4.8% in the past year alone. Global investors are therefore casting their net beyond the capital, exploring opportunities in other leading cities such as Manchester and Birmingham.
- 99% of investors said they would invest in areas outside of London.
- Investors rank Birmingham as one of their highest considerations, as the city increasingly gains interest from international investors.
A new generation of UK property investors from the GCC
As a new, youthful generation of property investors emerges, there is a significant increase in interest for property investment education. This new generation of UK property investors are keen to understand investment strategies, top areas to invest in and opportunities that will continue to generate long-term generational wealth.
- 70% of Saudi Arabia’s population is under the age of 40
- There has been a surge in participation in entrepreneurship and private enterprise, as the younger generation looks to innovative careers and UK property investment.
The search for trusted property investment advisors
As many UK property investors are based across the globe, investors often seek support from reputable advisors or developers, who can provide continued advice and assistance throughout the investment process.
- 38% of GCC investors flagged the limited availability of advisors who understand both local and international markets holds them back from investing.
- 35% find financial products overly complex, and would like assistance from a trusted advisor to navigate the process.
Your UK investment partner in the GCC
Since 2005, Select Property has been the trusted UK property developer and investment partner for thousands of GCC investors. From our Dubai Marina office, now expanding a permanent presence to Saudi Arabia, we specialise in bespoke property consultation and investment support in both English and Arabic.
Our team of expert property consultants provide long-term support, in identifying the best opportunities for you, assisting with the buying process, managing the property post-purchase for you, and providing an exit strategy should you wish.
- Offices in Manchester, Dubai, Saudi Arabia, Shanghai and Hong Kong
- Hand-picked investment opportunities in the UK’s top-performing cities
- In-house property and tenancy management team: Select Residential
- Award-winning developer, creating the most premium properties that transforms skylines
- In-depth knowledge of international property markets
- Buy with confidence directly through the developer with a proven track record and investment model