Investors from the Middle East are choosing properties in London over rival international centres, given the “availability of diverse assets” in the capital.
According to research from Al Rayan Bank, one of Britain’s largest Islamic banks, London “remains the primary focus” for investors thanks to its combination of strong rental growth, surplus demand and its status as a “reliable location for safe returns”.
Of the 150 investors surveyed by the bank for its GCC investment barometer, a third had bought a mixture of commercial and residential property in London over the past 12 months, more than any other global market. Those that invested in London in the year to the end of July spent an average of $90.8 million each, higher than the average $90.4 million spent in Tokyo and $89.7 million in Zurich over the period.
More than four fifths of the respondents, from Saudi Arabia, Qatar and the United Arab Emirates with an average net worth of $208 million, said their confidence in the UK market had increased over the past year, with the majority saying they planned to make new investments or to increase their investments over the next five years.
Of those planning to invest in London, 55 per cent were targeting central London, with east London (32 per cent) the next most popular area.
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In national terms, 59 per cent were considering residential apartments, 52 per cent were looking at commercial office space and 49 per cent at residential housing.
Maisam Fazal, chief commercial officer at AI Rayan Bank, said: “Investors know they can rely on the UK’s stable currency, growing demand for housing, rising rental incomes, transparent legal system and its skilled property professionals, which make buying and owning property in the UK a profitable and headache-free experience”.
Outside London, with 56 per cent of investment, the top UK destinations were Liverpool and Manchester, with 34 per cent.
