London remains the number one international city for Arab investors from the Gulf Cooperation Council (GCC) region.
According to the latest AlRayan Bank survey of high-net-worth investors from Saudi Arabia, Qatar and the UAE – with a minimum £10m in wealth and/or assets – 29% invested in London property in the last 12 months, ahead of New York (23%), Paris (23%), Los Angeles (22%) and Tokyo (21%).
The findings show that almost all (99%) GCC investors will make new or increased investments over the next five years, with student accommodation (34%) near the top of the shopping list.
Confidence in the UK property market is high, with 93% saying this has increased in the last 12 months following five Bank of England base-rate cuts, falling prices in prime London postcodes such as Mayfair, Chelsea, Westminster and Belgravia, and a housing shortage that continues to push up rental yields.
The Bank says that the introduction of visa-free travel for GCC nationals and the UK’s relatively low 24% Capital Gains Tax rate have added to the UK market’s draw.
Giles Cunningham, chief executive of AlRayan Bank, says: “London’s status as the top global destination for GCC property investors comes as no surprise; its unmatched blend of lifestyle, security, and strong returns continues to set it apart.”
This year’s report highlights a growing appetite for opportunities across the UK’s towns and cities.
While central London still attracts the largest share (38%), East London (36%), the suburbs (33%) and North London (29%) are increasingly on the radar, reflecting regeneration projects and improved transport links.
While London remains the frontrunner, GCC investors are broadening their focus across the UK. Liverpool is the top regional hotspot for the third consecutive year followed by Cardiff, Brighton, Birmingham and Edinburgh.
Strong returns and rental growth are the leading investment drivers (57%), closely followed by favourable purchase terms (56%). Sustainability is also climbing fast on the agenda, with 95% of investors seeking green investments and factoring environmental performance into their decisions.
This article is taken from Landlord Today