Gulf Cooperation Council high-net-worth investors are stepping up purchases of London real estate, driven by softer pricing, improving financing conditions and a search for stable income, according to a new survey by Al Rayan Bank.
Twenty-nine per cent of surveyed investors from Saudi Arabia, Qatar and the United Arab Emirates bought property in London in the past 12 months, ahead of interest shown in New York and Paris at 23 per cent each, Los Angeles at 22 per cent and Tokyo at 21 per cent, the bankโs GCC Investment Barometer found.
The third annual poll canvassed 150 respondents with at least 10 million pounds in wealth or assets. Ninety-nine per cent said they intend to make new or increased investments over the next five years, with retail property cited as a top target by 44 per cent, hospitality and leisure by 36 per cent and student accommodation by 34 per cent.
Investor confidence in the UK property market has strengthened over the past year, the report said, with 93 per cent of respondents reporting higher confidence. The bank said that sentiment has been supported by a series of Bank of England base-rate cuts, easing prices in prime London postcodes such as Mayfair, Chelsea, Westminster and Belgravia, and a persistent housing shortage that is buoying rental yields. The bank also pointed to visa-free travel for GCC nationals and the UKโs 24 per cent capital gains tax rate as additional attractions.
โThe question we hear most from GCC investors is no longer where to buy, but how to execute with speed, certainty and control,โ said Maisam Fazal, chief commercial officer at Al Rayan Bank. โClients from the Kingdom of Saudi Arabia, and across the region, are increasingly focused on securing the right opportunities, delivered through structures that align with their values and governance frameworks.โ
Confidence in the regionโs financial services is uneven, the barometer showed. Seventy-eight per cent of Qatari investors said services, particularly those supporting international investment, are well tailored to their needs. That compares with 52 per cent in the UAE and 40 per cent in Saudi Arabia. Despite that, Saudi participants signalled the strongest appetite for large transactions, with 32 per cent planning to invest 100 million dollars or more over the next five years.
The report flagged gaps in Saudi Arabia around private banking and structured wealth solutions. It said a younger, digitally savvy cohort is propelling change, with growing interest in long-term, Sharia-compliant strategies. Al Rayan Bank reported sharp growth in Saudi-originated business, noting that Home Purchase Plan Premier volumes rose from 16 per cent in 2020-21 to 69 per cent by 2025. Structured real estate activity across the GCC recorded an 80 per cent uplift, led largely by Saudi clients targeting prime London assets, the bank said.
Investor preferences in the UK capital are broadening. While central London remains the largest draw at 38 per cent, East London attracted 36 per cent, the suburbs 33 per cent and North London 29 per cent. The bank linked the shift to regeneration schemes and transport improvements. Outside the capital, GCC investors are also widening their focus. Liverpool ranked as the top UK regional hotspot for the third consecutive year in the survey, followed by Cardiff, Brighton, Birmingham and Edinburgh.
Returns and rental growth remain the dominant investment driver, cited by 57 per cent of respondents, with favourable purchase terms close behind at 56 per cent. Sustainability is rising up the agenda, with 95 per cent of investors factoring green credentials into their decision-making, the survey found.
โAcross Saudi Arabia, the UAE and Qatar, our clients are sharpening their focus on London and a handful of strong UK regional cities,โ Fazal said. โThey are prioritising transparent markets, stable income and long-term capital growth, and the UK continues to offer that mix.โ
The findings underscore the Middle Eastโs role in cross-border capital flows into UK real estate, particularly from Saudi Arabia, and suggest demand could remain resilient if yields stay attractive and execution support for large, Sharia-compliant deals continues to improve.
