Prime central London agents are reporting a sharp rise in enquiries from Middle East buyers as the escalating conflict in the Gulf begins to influence global property decisions.
Families, investors and expatriates are now increasingly looking to London as a safe haven and high-end agencies say the change in sentiment emerged within days of the latest escalation.
Some buyers are accelerating purchases in the UK while others have entirely abandoned plans to relocate to the UAE or Saudi Arabia.
Data from Beauchamp Estates suggests demand from Gulf-based buyers was already strong in the super-prime market but has risen further since the crisis began, particularly for homes above £15m and short-term rental property in central London.
LARGEST BUYER GROUP
Rosy Khalastchy, Director at Beauchamp Estates, says: “Buyers from the Gulf region are currently the largest group of buyers for luxury homes in Central London, especially for homes priced above £15 million.
“Gulf buyers currently account for 25% of all £15 million plus home sales across London, up from 20% in 2024.
“They are the largest buyer group, followed by American purchasers.”
IMMEDIATE IMPACT
She adds: “There are three distinct types of buyers from the Gulf who both own and also rent homes in London. The first group are domestic Gulf nationals, in particular from the United Arab Emirates and Saudi Arabia.
“The next group are Indian, Pakistani, Yemeni, Lebanese and UK expats, who are now based in the Gulf, but either own or rent second homes in London. The third group are wealthy Israelis, who own or rent homes in the UK capital.”
Instability has had an immediate effect on activity.
She says that the latest instability has had an immediate effect on activity.
“Since the current Gulf crisis began two weeks ago, Beauchamp Estates has seen a 15% rise in enquiries, both for homes for purchase and to let, from Gulf nationals, and also Indian, Pakistani, Lebanese and other nationals who are based in the Middle East.
“A lot of families based in the Gulf who have young children are particularly anxious on ensuring their families are safe at present.
“There has also been a 10% rise in enquiries over the last two weeks from Gulf based UK nationals… looking to either rent or buy a pied-a-terre property back in London.”
SIGNIFICANT MOVEMENT
Photo Credit: Beauchamp Estates / Tony Murray
The agency believes the potential scale of movement could be significant given the size of the British expatriate population in the region.
“As it stands more than 4,000 people have returned from the Gulf to the UK and 140,000 UK nationals based in the Middle East have registered their presence with the UK Foreign Office… It is estimated that some 240,000 British nationals live in the United Arab Emirates.
“Even if less than 5%… decide to relocate back to the UK… that still represents some 12,000 people… some will need short-term rentals, and others may wish to buy a pied-a-terre in the UK as a bolthole.”
ECONOMIC UNCERTAINTY
Agents say the shift is also being driven by wider economic uncertainty, with energy prices rising and global markets volatile – conditions that traditionally push international wealth towards London real estate.
Mark Pollack, Co-Founding Director of Aston Chase, says the conflict has already changed buyer psychology.
“If anything, the current Gulf crisis has given the London property market a boost… it has been a very abrupt reality check for many who have been lured to Dubai… I sense that it is helping us to get existing deals over the line.”
He adds: “The safety implications highlighted by the conflict… may well result in people recognising that investing in bricks and mortar in London is a relatively safe bet… London remains one of the safest and most stable places in the world to park money or live.”
Prime agents say that if the crisis continues, demand from international buyers could become one of the strongest drivers of the London market in 2026, reversing several years of subdued activity following tax changes, political uncertainty and the post-pandemic shift in global wealth flows.
