Saturday, August 13, 2022

GCC nationals expected to increase UK property investments

UK property investments

According to a report by Knight Frank, Gulf-based high-net-worth families have returned to property investments in recent months

In the face of global inflationary pressures, supply-chain disruption, and interest rate rises, Gulf Cooperation Council (GCC) nationals are expected to increase their investments in UK real estate, according to a new report.

The Bank of London and The Middle East (BLME), a London-based independent Shariah-compliant bank, stated that there is a clear opportunity for Gulf Cooperation Council investors to unleash the post-pandemic potential of property assets across the United Kingdom, with regional markets now outpacing London’s growth.

The Bank of London and The Middle East stated that investors concerned with wealth preservation should concentrate their efforts in London, despite lower potential yield and capital appreciation, because the city is regarded as a ‘safe’ investment bet.

However, for higher yield potential, investors might look at regions away from the capital.

For example, prime City of London office yields are currently at 3.75 per cent, whereas their equivalent in the regions is 4.75 per cent, the bank said.

According to a May report by property consultancy Knight Frank, Gulf-based high-net-worth families have returned to property investments in recent months as the real-estate market recovered from the worst effects of the COVID-19 pandemic.

It was recently reported that Gulf Cooperation Council investors are leveraging a weak pound to buy assets in the UK’s luxury property market after the pound fell to its lowest level against the dollar since March 2020 in early June. According to Knight Frank, the number of offers accepted in prime central and outer London reached a 10-year high in May.


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