Regional cities in the UK popular among Gulf property investors
Regional cities in the UK are proving to be popular destinations among Gulf property investors
Although property investors from the Middle East are still focused on London as the property hotspot in the UK, England’s Manchester has now emerged as a popular destination in real estate.
The UK’s North West city of Manchester has drawn the attention of Gulf-based real estate investors in recently, according to a report Wednesday from Select Property Group. The city has become increasingly popular among Gulf Coast property investors who are seeing the region as a safe bet for investment.
Buyers from countries like Kuwait, Saudi Arabia, Oman, Qatar and the U.A.E are opting for the city as it proves to be the second most attractive investment location in the U.K., behind London.
There was a tilt towards Manchester compared with any other city in the UK as 13% of Gulf Coast-based real estate investors surveyed by the property investment company were inclined to invest in the city.
The report said that though London continued to occupy the top spot as the prime destination for property investment in the UK, with more than half of those surveyed (54%) preferring the city for their investment goals, the demand for real estate in the capital is declining. Buyers are now looking beyond London and moving onto regional cities due to low yields and falling price growth in London’s real estate.
Managing director of Select Property Group, Adam Price said in the report that London can no longer offer the levels of growth it did 10 to 20 years ago. Prices are reaching an affordability ceiling and, when coupled with slow yield growth, makes property in the capital an increasingly difficult investment to justify.
Price said, but with low supply and strong growth forecasts, Manchester presents a good opportunity for investors to enter the market as the city enters a period of economic development.
Looking ahead, residential sales prices in Manchester are projected to rise 81% faster than the U.K. average by 2022, while rental prices are forecast to grow 40% faster than the national average.
Outside of Manchester and London, Liverpool was the next most popular investment city (5%), followed by Oxford and Cambridge (3% each).