GCC residential real estate to grow from $2.98 trillion to $3.43 trillion by 2028
Dubai, UAE – 8 November 2023: Select Property, a leading UK-based property developer and investment partner with over 18 years of experience in Dubai, cites that rental prices in the UK are projected to grow by 15.9% between now and 2027; the award-winning developer attributes this growth to several factors including increased investment interest from the Gulf Cooperation Council (GCC).
From June 2022 to June 2023, average rental prices throughout the UK increased by 5.1%. According to Select Property, rental demand in prime city centre locations like Manchester is at an all-time high with rental yields of up to 8% being achieved annually. This promising investment potential has contributed to a forecast of more than $3 billion from the Middle East being invested in the UK’s real estate sector in 2024.
Over $3 billion will be invested from the Middle East into UK real estate in 2024
The value of GCC real estate as a whole is expected to reach $4.43 trillion this year and show a compound annual growth rate (CAGR) of 2.65% through 2028 to achieve a market volume of $5.05 trillion. Moreover, the GCC’s residential real estate value is on pace to grow at a CAGR of 2.85% from $2.98 trillion to $3.43 trillion in the same period. With the region appearing to have sidestepped any negative ramifications of a global recession, investors are leveraging this economic strength by seeking global investment opportunities to diversify their income.
Adam Price, CEO of Select Property, commented: “With its resilience during economic uncertainty in recent years, the UK has maintained its long-standing position as one of the world’s smartest choices for property investment. The GCC has played a key role in spurring this growth as intelligent investors have taken notice of the market’s increasing property prices and competitive rents to capitalise on both short- and long-term returns. With the GCC’s strong economic performance holding steady, the UK’s real estate sector appears poised to remain a beneficiary for the foreseeable future.
Rental demand in Manchester is at an all-time high with rental yields of up to 8%
With an expected 8.9% increase in overall prices in the UK by 2027, Manchester and Birmingham are anticipated to observe the highest growth at above 19% each; these cities are also predicted to experience the highest rental price growth at 21.6% and 19.3% respectively, according to JLL’s Big Six Residential Report July 2023. While there is no one-size-fits-all solution for investing in real estate, given the current market dynamics, Select Property recommends a buy-to-let strategy as a profitable approach. The trusted real estate partner continues to facilitate transactions for world-class residences in some of the UK’s most desirable cities, including Birmingham and Manchester, with Affinity Living and The Prestige Collection being among the famed brands delivered to its clients.
Select Property is an award-winning, leading developer and investment partner, with a strong focus on consultation and service that delivers exceptional residential real estate properties. As an end-to-end service provider, they develop, sell, and manage UK property investments to support global investors throughout the journey. Through their in-house team of experts and almost 20 years of reliable, trusted experience, they create bespoke approaches for clients that incentivise recurring annual investment.