Looking to the future, BLME forecasts that demographic trends and supply shortages will make the living sector a more popular option for investors in the future – especially those from the GCC
Investment in the UK property market by Gulf investors is set to rise, shows new research from Bank of London and The Middle East (BLME).
According to the research, the UK market is heading for a “once-in-a-decade economic alignment”, with cuts to interest rates expected later in the year, a new government in place, dropping inflation and lower property prices in some segments of the market creating an opportunity for Gulf Cooperation Council (GCC) investors from Saudi Arabia, Kuwait, the UAE, Qatar, Bahrain and Oman ready to deploy their capital.
Around 87% of interviewees BLME spoke to for the report said declining interest rates would be a key driver of GCC investor appetite over the next 12 months.
Looking to the future, BLME forecasts that demographic trends and supply shortages will make the living sector a more popular option for investors in the future – especially those from the GCC.
Purpose-built student accommodation in particular is a popular asset for investors, with 68% of respondents saying their clients were focused on the sector, because of the structural shortfall and low tenant failure rates.
Rashid Khan-Gandapur, director, real estate finance at BLME, said: We anticipate investors from the GCC will look to the UK to diversify their portfolios, and they will see profitable opportunities to invest and improve existing building stock including the enhancing of ESG credentials as a driver of value.
Investment in UK commercial properties as a whole is expected to grow to more than $4 billion annually. This figure will be boosted further by investment in the residential sector, with GCC investors showing a growing appetite for undertaking large scale living sector investments, he added.
