The property market in the UK is currently experiencing strong growth, presenting a favorable opportunity for investors to expand their portfolios with potential for significant returns.
By Adam Demetriou, Director – Berkeley MEA & India
The UK property market, renowned for its stability and growth potential, has become a focal point for international investors seeking exciting opportunities. In this context, Berkeley Group places a distinctive emphasis on its long-term goals within the GCC region, aiming to facilitate investors’ entry into the UK property market. The Group’s strategic vision extends beyond immediate gains, with a commitment to nurturing sustainable communities that align with the evolving preferences of GCC investors.
The Path to UK Property: Insights from GCC Buyers
The GCC market has experienced a remarkable surge in purchase enquiries in the UK recently. Notably, Marc von Grundherr, Director of Benham and Reeves, highlights this upward trajectory in demand, particularly in the prime market segment valued at £3 million and above. This surge in interest aligns with the overall market trend and showcases the resilience of the UK property market in captivating GCC investors.
Will McKintosh, Senior Director at JLL, Head of Residential & Investment – MENA, notes the common belief among investors that purchasing off-plan holds strategic advantages. By buying off-plan, investors anticipate potential currency gains and expect interest rates to have corrected by handover, making financing more favourable. The convergence of these factors makes UK property investments even more appealing to GCC investors.
Motivating Factors for GCC Buyers: Unlocking the Allure of UK Property
The allure of UK property for GCC buyers is multifaceted, with the prospect of long-term value appreciation and attractive financing opportunities standing out. With the British pound recently hitting its lowest level against the US dollar in nearly 40 years1, the relative weakness of the pound sterling against other major currencies, including the AED, further enhances the appeal of UK property investments2. This currency advantage empowers foreign investors to maximise the value of their investments and potentially amplify returns. The opportunity presented by the pound’s current position is not lost on investors, and the GCC region’s investors are well-poised to capitalise on these favourable market conditions.
Rising Demand from the GCC Market: A Statistical Perspective
In 2022, both Saudi Arabia and the UAE secured positions in the top 10 countries outside the EU for international students studying in the UK3. This educational connection underlines a strong bilateral relationship and augments the appeal of UK property investments for GCC investors. Middle Eastern investors are also projected to inject US$3.2 billion into the UK real estate market in 2024. This influx of capital is driven by the market’s increasing affordability and a growing interest in the student accommodation sector4. As GCC investors diversify their portfolios, the UK’s real estate market emerges as an attractive avenue for long-term gains and financial stability.
Berkeley Group’s Commitment to a Flourishing Partnership
Berkeley Group’s commitment to sustainable placemaking and long-term performance solidifies its role as an esteemed partner for GCC investors venturing into the UK property market. By prioritising the creation of nature-rich communities and embracing holistic placemaking, the Group aligns with the evolving preferences of investors who seek not only financial gains but also a positive impact on society and the environment.
Berkeley Group’s strategic approach mirrors the aspirations of GCC investors, who recognise the intrinsic value of long-term investments aligned with sustainable development. As both parties share a vision of a flourishing partnership, GCC investors can confidently navigate the UK property market, capitalising on the Group’s expertise and dedication to excellence.
Unlocking the Full Potential of the UK Property Market
The UK property market holds undeniable allure for GCC investors seeking stable returns, long-term growth, and a pathway to financial security. The convergence of a range of factors presents a compelling case for GCC investors to diversify their portfolios through UK property acquisitions.
Berkeley Group’s commitment to long-term investment performance underscores its pivotal role as a partner for GCC investors. Through strategic collaboration and a shared vision, both parties can navigate the dynamic UK property landscape with confidence, unlocking the full potential of one of the world’s most robust real estate markets. As GCC investors continue to chart their course, the UK property market stands as a golden opportunity for those who seek both financial prosperity and a positive impact on society.
As part of Berkeley’s strategic efforts to expand its presence in Saudi Arabia, the company is set to participate in Cityscape Global Saudi Arabia 2023. Anticipating over 150,000 visitors and featuring 350 exhibitors spanning both local and international spheres, Cityscape Riyadh is poised to become one of the foremost global real estate events, spotlighting property, communities, and prestige, centred around a Majlis of Innovation. Berkeley Group will prominently present a range of developments across London, the Home Counties, and Birmingham within the esteemed UK Pavilion at the Riyadh Exhibition & Convention Center from September 10th to 13th. This engagement affords Berkeley Group a platform to not only strengthen existing partnerships but also establish new relationships throughout Saudi Arabia and the wider region.
1 – https://www.arabianbusiness.com/markets/currencies/british-pound-hits-record-low-against-uae-dirham
3 – https://www.arabnews.com/node/2348391/business-economy