The allure of London property is undeniably growing among high-net-worth investors in the Gulf Cooperation Council (GCC), with recent figures revealing that 29% of these affluent investors made real estate purchases in the city over the past year. This trend, highlighted by AlRayan Bank, is fueled by attractive market dynamics and value-driven opportunities that have collectively driven demand among investors from nations such as Saudi Arabia, Qatar, and the UAE.
According to the latest GCC Investment Barometer from AlRayan Bank, London leads the pack in property investment appeal, outpacing notable cities like New York and Paris, both of which saw a 23% investment rate, while Los Angeles captured 22% and Tokyo 21%.
GCC Investors Eye London Property
The third annual survey conducted among 150 high-net-worth investors, each possessing at least £10 million ($12.2 million) in wealth or assets, shows that a remarkable 99% are poised to ramp up their investments in the upcoming five years. The sectors that draw the highest interest include retail property at 44%, hospitality and leisure at 36%, and student accommodation at 34%.
Investor sentiment regarding the UK property market has significantly strengthened, with 93% of respondents expressing increased confidence over the last year. This boost in optimism is largely attributed to the Bank of England’s recent cuts in base rates, coupled with declining prices in prime London neighborhoods like Mayfair, Chelsea, Westminster, and Belgravia. Furthermore, a persistent housing shortage has enabled rental yields to rise.
Factors like visa-free travel for GCC nationals and the UK’s comparatively low Capital Gains Tax at 24% have enhanced the appeal of London property investment.
Maisam Fazal, Chief Commercial Officer at AlRayan Bank, emphasized the evolving interests of GCC investors, stating, “The question we hear most from GCC investors is no longer where to buy, but how to execute with speed, certainty, and control.”
“Clients 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. At AlRayan Bank, we’re enabling this through Sharia-compliant club deals, off-market transactions, and partnerships with proven operators to drive performance from day one,” she added. “There is growing demand for sustainable investments and assets, and we’re proud to support our clients with tailored solutions that protect long-term value. Our in-country presence ensures we stay close to investor priorities and continue evolving with their needs.”
London Property Attracts HNWI
While demand is robust among investors in Saudi Arabia, the UAE, and Qatar, their confidence in local financial services varies significantly. A notable 78% of Qatari investors feel that services tailored for international investment sufficiently meet their needs. In contrast, only 52% of UAE investors share this sentiment, and just 40% of Saudi investors express similar confidence, despite being the most inclined toward high-value transactions—with 32% planning to invest $100 million or more in the next five years.
The survey also identifies shortfalls in Saudi Arabia’s private banking and wealth solutions landscape. Nevertheless, younger, tech-savvy investors are propelling changes, increasingly interested in long-term, Sharia-compliant investment strategies.
AlRayan Bank has noticed a significant uptick in business originating from Saudi Arabia. Home Purchase Plan Premier volumes surged from 16% in 2020-21 to a projected 69% by 2025, while Structured Real Estate activity across the GCC experienced an 80% increase, led by Saudi clients eyeing prime London property.
Beyond Central London Property
Within the UK capital, investment preferences are broadening. Although central London remains the preferred market, attracting 38% of investments, East London (36%), the suburbs (33%), and North London (29%) are increasingly appealing due to ongoing regeneration and transport improvements.
Moreover, GCC investors are expanding their horizons beyond London. The AlRayan Bank survey names Liverpool as the top UK regional hotspot for the third successive year, trailed by Cardiff, Brighton, Birmingham, and Edinburgh. Returns and rental growth (57%) stand as primary motivators for investment, closely followed by favorable purchasing terms (56%).
Sustainability is progressively becoming a priority, with an impressive 95% of investors integrating green credentials into their investment decisions.
Fazal notes, “Across Saudi Arabia, the UAE, and Qatar, our clients are sharpening their focus on London and select strong UK regional cities. They’re prioritizing transparent markets, stable income, and long-term capital growth – and the UK continues to offer that mix. Over many years, we’ve built strong trusted relationships in Qatar and the UAE, and we’re now expanding our on-the-ground presence in Saudi Arabia, which is an exciting next step in our journey.”