The recent shift to a lower interest rate environment and lower property prices in certain market segments has driven investors from the Gulf Cooperation Council (GCC) region to seek investments in the U.K. Market data from BLME reveals that a notable 87 percent of GCC investors cited falling interest rates as a key influence in their investment decisions in 2024.
Branded residences attract Saudi investors
Branded residences have particularly been a focus for Saudi investors, driven by their preference for high-quality, well-managed properties that offer prestige and reliable returns. The survey also reveals that 69 percent of Saudi households aim to own a branded property. This type of residence is accompanied by top-tier amenities in prime locations. Therefore, many have looked to the U.K. to realize this vision through secondary investment.
According to Adam Price, CEO of Select Property, despite global uncertainties, the most evident trends show that investors from Saudi Arabia are increasingly pursuing capital appreciation to generate rental income and diversify their investment portfolios.
U.K. visa waiver facilitates investments
Earlier this year, the U.K. implemented a visa waiver for GCC nationals. This policy reform makes property viewings, real estate transactions, and mortgages more accessible for Middle Eastern investors in the U.K.
These findings align with the latest survey results which revealed that 73 percent of Saudi investors have considered investing in U.K. property. In addition, 75 percent are eyeing Birmingham or Manchester, and 65 percent view real estate as their top investment strategy.
The synergy between GCC investors and the U.K. real estate market is also apparent as market analysis estimates a staggering $3.19 billion influx of investment in 2024. “GCC investors who lock eyes with the allure of U.K. real estate are often keen to capitalize on rental income, the city’s well-known economic opportunities, or both,” added Price.
Read: Emerging markets and the growth of branded residences Â
GCC students drive growth
The number of GCC students in the U.K. will likely continue rising. Over 8,000 UAE students are currently studying in the UK, nearly double the number from five years ago. In line with that growth, Select Property has seen an increase in inquiries for their services from Saudi investors pursuing educational opportunities in Birmingham, one of the top cities for student investors. Rental yields ranging from 6.6 percent to 8 percent make cities like Birmingham demonstrate their potential for strong ROI.
“Supply shortages are positioning the U.K.’s real estate sector as an attractive option for investors seeking stable returns and long-term growth,” added Price.
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