London remains the top global destination for wealthy Gulf investors with new research showing continued flows of capital into the capital’s prime property market despite wider global uncertainty.
The GCC Investment Barometer, published by AlRayan Bank, surveyed 150 high-net-worth individuals from Saudi Arabia, Qatar and the UAE, each with a minimum of £10 million in assets.
It found that 29% invested in London property over the past year – ahead of New York, Paris, Los Angeles and Tokyo.
Falling prices in central London postcodes, 5% Bank of England rate cuts and a shortage of rental stock have all boosted confidence, with 93% of respondents saying their outlook for the UK property market has strengthened in the last 12 months. Visa-free travel for GCC nationals and the UK’s relatively low capital gains tax rate have also made investment more attractive.
EAST LONDON DEMAND
While Mayfair, Chelsea and Belgravia continue to dominate, demand is spreading to East London, the suburbs and regeneration zones linked to new transport infrastructure.
Regional cities are also gaining traction, with Liverpool ranked the top hotspot for the third year running, followed by Cardiff, Brighton, Birmingham and Edinburgh.
Retail property, leisure and student accommodation are the preferred sectors for future investment.
Nearly all investors surveyed expect to increase their UK exposure over the next five years, with sustainability now a growing factor in decisions – 95% said they actively seek green investments.
AlRayan Bank said the findings underline both London’s enduring status and the deep commercial and cultural ties between the UK and Gulf states.
ENDURING STRENGTH
Maisam Fazal, Chief Commercial Officer at AlRayan Bank, says: “The enduring strength of GCC investment in the UK is built on more than market fundamentals – it is also about trust and the quality of service investors receive.
“AlRayan Bank has become the partner of choice because we combine deep regional understanding with tailored, Sharia-compliant finance solutions that evolve with client needs. This differentiated approach means we are uniquely positioned to help investors unlock opportunities across London and beyond.”
And he adds: “As the findings show, London will remain the benchmark for global real estate, but the regions are playing an increasingly important role in portfolios.
“The deep ties between the GCC and the UK – built on trust, friendship and integrity – remain a defining feature of this relationship and will continue to underpin investor confidence for years to come.”
