Falling interest rates drive 87 percent of GCC investors to eye U.K. in 2024
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Loading... - Farida Reda
- 26 Aug 2024
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A recent survey by BLME reveals that 87% of GCC investors are considering investing in the UK property market in 2024, driven by falling interest rates and lower property prices in certain market segments.
Key Findings
- 73% of Saudi investors have considered investing in UK property
- 75% of Saudi investors are eyeing Birmingham or Manchester
- 65% of Saudi investors view real estate as their top investment strategy
- 69% of Saudi households aim to own a branded property
- GCC investors are attracted to the UK's stable returns and long-term growth potential
Branded residences are a focus for Saudi investors, who prefer high-quality, well-managed properties that offer prestige and reliable returns. The survey reveals that 69% of Saudi households aim to own a branded property, and many are looking to the UK to realize this vision through secondary investment.
The UK's recent implementation of a visa waiver for GCC nationals has made property viewings, real estate transactions, and mortgages more accessible for Middle Eastern investors in the UK.
The number of GCC students in the UK is expected to continue rising, with over 8,000 UAE students currently studying in the UK. This growth has led to an increase in inquiries for services from Saudi investors pursuing educational opportunities in Birmingham, one of the top cities for student investors.
Cities like Birmingham offer rental yields ranging from 6.6% to 8%, making them an attractive option for investors seeking stable returns and long-term growth. Market analysis estimates a staggering $3.19 billion influx of investment in 2024, driven by GCC investors seeking to capitalize on rental income, economic opportunities, or both.
According to Adam Price, CEO of Select Property, "GCC investors who lock eyes with the allure of UK real estate are often keen to capitalize on rental income, the city's well-known economic opportunities, or both." He adds that "supply shortages are positioning the UK's real estate sector as an attractive option for investors seeking stable returns and long-term growth."
