Posted inProperty

London’s ‘Little Beirut’ attracts renewed Middle East interest amid regeneration

Having welcomed its first Middle Eastern migrants in the 19th century, Edgware Road is piquing interest from the region again

London's 'Little Beirut' attracts renewed Middle East interest amid regeneration

London’s Edgware Road is undergoing a multimillion dollar government regeneration plan, which has piqued the interest of Middle Eastern buyers.

The Edgware Road area, long home to a large Arab community, has been attracting interest because of its upcoming regeneration plan, as well as proximity to retail and leisure offerings in both Marylebone and St John’s Wood.

That’s according to Henry Faun, partner at Knight Frank, private office – Middle East. “Regional clients have expressed a renewed interest in areas north of Hyde Park – particularly around the Edgware Road – in recent months,” he told Arabian Business.

The long-awaited regeneration of the area’s historic Church Street will see some 1,700 new homes included in its blueprints, as well as an improved street market, new cultural quarter, and flexible workspaces.

Having welcomed its first Middle Eastern migrants in the 19th century, Edgware Road remains one of the longest-standing migrant communities in London. Colloquially known as “Little Beirut” and “Little Cairo”, the stretches between Hyde Park and Little Venice are peppered with some of the city’s finest shisha cafes and Arabic restaurants.

To the east of the road, the upmarket Marylebone area has significantly gentrified over the last two decades and to the west, the Paddington basin has been the welcome beneficiary of vast regeneration spending. In both areas, real estate prices are dwarfing those of Edgware Road, which currently represents significant price value for investors, said Faun.

Apartment prices in the area’s 54-apartment Bryanstone development, which overlooks Hyde Park, range from £2.6 million for a 900 square foot apartment to £66 million for a sprawling five-bedroom penthouse. In a nod to the rising luxury levels in the area, residents of the Almacantar-developed project will have access to a wellness area which includes a 25m swimming pool, a sauna, a Turkish bath and a gym. The complex has a 24-hour concierge service.

At the nearby Lyons Place — where Almacantar has another mixed-use site — a three-bedroom townhouse is on the market for £2.5 million.

Kathrin Hersel, property director at Almacantar, told Arabian Business that the real estate company has received over 350 enquiries from MENA applicants at its two Edgware Road developments, with interest coming from Bahrain, Saudi Arabia, Lebanon and UAE. Buyer enquiries from the region have been reasonably steady, however, June, July and August saw a spike in interest as building works near completion, she said.

The Edgware Road area is increasingly being perceived as “very good value” by Middle Eastern investors, according to Otto Twist, associate director, London residential development at property firm Savills. The firm has sold 50 out of 109 private apartments at its Carrick Yard development, he said.

“Some of our buyers are from the Middle East,” he said, adding that Arab investors already “have an understanding” of the area, given its Middle Eastern cultural and community links.

“We launched Carrick Yard right at the end of the UK’s lockdown and we sold flats very quickly as there was a lot of pent up demand from Middle East buyers,” Twist said.

Extensive regeneration

The next 10 years will also see an extensive transformation of the area by the Portman Estate, which is in the process of investing £250 million in regeneration.

Key focuses for development include the area around Marble Arch, where Edgware Road meets Oxford Street, currently undergoing a major conversion into a high quality public space, opening up a previously untapped link with Hyde Park.

The project will improve road safety, create better walking and cycling connections, alongside an accessible and healthier environment with improved air quality.  It also looks to introduce new greening and improved tube access, including a step-free ticket hall at Marble Arch station, and better bus connections.

“The Portman Estate will improve the look and feel of the area and add a more cosmopolitan feel to what has been has historically very Middle Eastern looking space,” said Faun.

‘Challenging’ travel restrictions

However, the Knight Frank expert said it is a “challenging time” for Middle Eastern buyers looking to buy London property given the current travel restrictions.

“We have seen less transactional volumes but interest is at an all-time high as Arab buyers look for second homes in London as they reassess their lifestyles amid the pandemic,” Faun said.

The property expert said he expects to see significantly more virtual viewings as international investors look to buy London property.

“Today the virtual walk around often counts as the first viewing, so when buyers they do see the physical property, they are able to make much quicker decision,” Faun said, adding that Edgware Road had seen significant interest from Saudi Arabian and Emirati buyers especially.

In a reflection of the global travel restrictions, the latest Savills data for Q1–Q3 2020 showed that 57 percent of £5m+ deals were to UK buyers, up from just over a third the same time last year.

Buyers from North Africa and Middle East accounted for seven percent of the market in the first three quarters of 2020, around half the level seen over the past few years.

Five things we learned

  1. Edgware Road is increasingly being perceived as “very good value” by Middle Eastern investors.
  2. Edgware Road has been attracting interest because of its regeneration plan, as well as proximity to retail and leisure offerings.
  3. The next ten years will see an extensive transformation of the area by the Portman Estate, which is in the process of investing £250 million in regeneration.
  4. The regeneration of Church Street will see 1,700 new homes, as well as an improved street market, new cultural quarter, and flexible workspaces.
  5. Buyers from North Africa and Middle East accounted for seven percent of the £5m+ deals market in the first three quarters of 2020, around half the level seen over the past few years.

Follow us on

For all the latest business news from the UAE and Gulf countries, follow us on Twitter and LinkedIn, like us on Facebook and subscribe to our YouTube page, which is updated daily.