According to expectations the value of Gulf investments in British real estate will reach a new level estimated at approximately $3.2 billion at the end of this year, indicating that this coincides with economic uncertainty around the world and a change in investment strategies.
A report issued by the Bank of London and the Middle East said: Smart Gulf investors are benefiting from pumping their money into British real estate to diversify their investment portfolios, amid the strong performance of local Gulf real estate markets, such as the Emirates and Saudi Arabia, reports Al-Qabas daily.
The report added, given the long-term stability of British real estate in 2023, an attractive exchange rate for the pound sterling, and a growing rental market in major city centers, such as Manchester, Sheffield, and Birmingham, we expect 33% of the wealthy in the Gulf to invest in British real estate during the current year.
The report explained that these three British cities are home to prestigious universities, which constitutes a strong incentive for Gulf investors to buy real estate there, noting that about a quarter of UK students are from outside the country.
The report stated that Gulf investors contributed about $2.35 billion to British luxury real estate sales in 2023, explaining that this amount does not only constitute a high monetary value, but rather a certificate of confidence that Gulf investors attach to the British real estate market.
In addition, the British real estate market witnessed a 10% increase in the number of wealthy people investing in luxury real estate in the country during the past year, while Gulf investors constituted the dominant group in this increase, the report said.
The report pointed out that the ease of monetary exchanges between the Gulf countries and Britain, and the electronic provision of the British visa for Gulf visitors, which will come into effect soon, will make purchasing British real estate easier this year and in the future.
The Bank of London and Middle East report indicated that the rise in Gulf investments in British real estate supports the creation of job opportunities in the country, enhances market stability, preserves the value of British real estate and attracts more foreign investments.
The Arabian Business website reported that Britain hosted about 800,000 visitors from Gulf in 2022, as most of them spend their summer vacation in Britain and reside in their investment properties.