Middle Eastern investors have ramped up their involvement in the British real estate market, a trend indicative of the larger opportunity the U.K. presents for the region.
Overlooking Lord’s Cricket Ground and steps away from Regent’s Park, this luxurious One St. John’s Wood penthouse is an address of distinction.
According to a recent report cited in Zawya, in the last six months of 2022 investment from the Middle East into prime central London real estate surged dramatically to a four-year high. In fact, in the same period, buyers from the region accounted for a staggering 10.9% of all real estate transactions in London’s most fashionable areas.
A myriad of factors have affected this, including a climbdown from the pandemic’s stringent travel regulations, particularly involving countries like the U.A.E that offered a strong COVID response. Additionally, although the British pound is not as soft as it was four months ago, it is still far below it has been in the past few years. This combines to make the U.K. a Goldilocks zone for Gulf investors, who see the country as a stable investment market with established real estate regulations.
This interest will be boosted even further with the announcement that U.A.E. residents can now receive a U.K. visa within 15 days, a massive reduction from the earlier period of over seven weeks.
Heathrow Airport can expect increased visitors from the U.A.E. after the U.K. announced a significant reduction to visa waiting times.
And although the British market may soften in the coming year, prime London properties (Zone 1) are expected to fare well, with Gulf investors continuing to benefit from the weaker pound. This is in tune with what Britain hopes to acquire from the region — a commitment to long-term financial relationships.
A post-Brexit United Kingdom is eager for new sources of investment and growth to diversify its economic model. For the foreseeable future, a renewed focus on fiscal responsibility and cautious regulations are expected to govern the country, making many a major sector asset available for attractive values — the strong Gulf interest in the British property market perhaps the most overt consequence of this.
There is no doubt that the U.K. still boasts a lot — finance and banking, technology, academia, creative industries and, most importantly here, real estate. This multifaceted offering is complemented by a yearning for sustainable sources of investment that can last decades.
The British property market offers long-term prospects, as well as a singular mix of both innovative developments and properties infused with history — a blend that synchronises well with the ambitions of Gulf investors.
On the Market
Fashionable Apartment Living on Oxford Street
From AED 5.3M (£1.2M)*
Studios, 1, 2 and 3 Bedrooms, and Penthouses
State-of-the-Art Covent Garden Living
From AED 4.4M (£995,000)*
Studios, 1 and 2 Bedrooms, and 3-Bedroom Penthouse
*Currency conversions accurate at time of writing
