Middle East investors are expected to boost their investment in the UK’s real estate market by over 36 percent this year, compared to last year, a latest industry report said.
Europe will see a 20 percent rebound in real estate investment activity this year, with the UK poised to spearhead this growth, the report by Select Property, a leading UK-based property developer and investment partner, said.
Adam Price, CEO of Select Property, said investors from the GCC region will significantly contribute to this resurgence.
Besides, the European real estate sector will also attract global investors from America, Japan, and Taiwan, he said.
“As a world-class investment destination with unparalleled advantages, the UK, and its property market, attracts savvy GCC investors as a proven method of diversification,” Price said.
For investors from the GCC seeking secure and predictable opportunities, London has long been the UK’s starring attraction, the report said.
However, an oversaturated market has formed on the heels of the consistently growing popularity of the UK’s capital city. As a result, Select Property has observed an uptick in interest in emerging areas like Sheffield, the second fastest-growing city economy,” the report said.
With Sheffield predicted to see a 20 percent increase in value over the next five years, GCC investors are turning their attention to up-and-coming areas that offer similar ROI (return on investment), the report said.
It also pointed out that Birmingham has also been a particular area of interest for investors with its annual rental growth being 17 percent and the highest in England, as per JLL’s Big Six Report.
Price said as per Knight Frank data, Saudi Arabia is set to see high-net-worth individuals (HNWIs) invest approximately $2 billion into its real estate sector.
“With HNWIs having additional wealth to work with, compared to the large majority of the population, such individuals are looking to the UK to satiate their desire of portfolio diversification,” he said.
The UK’s strong economic fundamentals and stable legal frameworks enable them to explore various property types, including branded residences which are seeing an uptick in interest, Price said.
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