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| Adam Price |
Dubai, UAE – 29 January 2024: Select Property, a leading UK-based property developer and investment partner with 20 years of experience in Dubai, shares insights on what factors are spurring GCC investors’ increased interest in the UK’s real estate market. Adam Price, CEO of Select Property, cites that expectations for GCC investment in UK properties to reach $3.2 billion in 2024 are driven by a mixture of declining prices of real estate assets in the UK, as well as global inflationary pressures, supply-chain disruption, and interest rate rises.
In the UK’s luxury real estate segment, affluent buyers from the GCC, United States, and China were dominant demographics in 2023. These investors contributed to a 10% uptick in the number of billionaires that were buying such properties in London; 54 homes priced upwards of $19 million and collectively worth over $1.65 billion were bought last year, up from 49 homes that equated to more than $1.3 billion in 2022. These 103 purchases resulted in an approximate value of $2.35 billion over the past two years to reinforce London’s strength as a major global real estate market for owner-occupier and trophy asset purchases. However, other regional cities are also garnering increased attention as of late due to their ability to offer higher returns on investment.
A 10% uptick in billionaires investing in UK luxury real estate was seen in 2023 with GCC investors being a dominant demographic responsible for this upward trend
According to Select Property, on the heels of growing GCC investment, Manchester, Sheffield, and Birmingham are poised to see strong growth in the years ahead. Through 2027, Manchester and Birmingham are forecasted to experience annual sales and rental growth of upwards of 19%. Sheffield, albeit a less mature market, is an up-and-coming UK city that is also beginning to capture the attention of GCC investors. As the UK’s second-fastest-growing city economy, it is being viewed as a sleeper investment which yields the potential for explosive growth down the road; property prices remain affordable while presenting an opportune moment for investors to capitalise on long-term gains.
Adam Price explained: “London has demonstrated a proven ability to consistently remain among the most sought-after cities for real estate investment whilst competing with the likes of key global destinations such as New York and London. However, savvy investors, especially from the GCC, are exploring lesser-known areas due to their attractive long-term potential. With many GCC residents desiring residences across multiple geographies, emerging hotspots such as Sheffield are gaining traction. From enviable lifestyles to impressive job prospects and educational opportunities, these cities are among some of the most lucrative for real estate investment despite their lack of global repute. As the global economy remains unstable, and the British pound (GBP) remains relatively weak compared to GCC currencies like the Saudi Riyal, intelligent investors are pursuing investment opportunities in these markets to capitalise on the exchange rate, seeking more value for less money.”
While there is no one-size-fits-all solution for investing in real estate, given 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, CitySuites, and The Prestige Collection being among the famed brands delivered to its clients. Select Property is currently witnessing increased interest from GCC investors in smaller markets such as Sheffield with Velocity Tower being a notable project in this area.
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.