The UK property market is about to get a huge injection of cash, with Gulf investors poised to make a major move. This is according to a new report from Bank of London and The Middle East (BLME), which suggests that the UK is on the verge of a “once-in-a-decade economic alignment” that is perfectly timed for GCC investors.

Why are Gulf investors so keen on the UK?

It’s a perfect storm of factors:

• Interest rates are falling: 87% of those surveyed by BLME said falling interest rates would be a major driving force for GCC investment in the next 12 months. This means borrowing money to invest in property will be cheaper, making it more attractive.
• New government and stable economy: The UK has a new government, the Brexit saga is over, and the economy is looking relatively stable compared to other European countries. This gives investors confidence that their investments will be safe.
• Property prices are dropping: In some segments of the market, property prices are coming down, creating opportunities for smart investors to pick up bargains.
• Strong demand for living spaces: The UK is facing a growing population and a shortage of homes. This is driving up demand for rental properties, making it a very attractive sector for investors.
• Focus on ESG: Environmental, Social and Governance (ESG) is becoming increasingly important to investors. This means investors are looking for properties that are sustainable and contribute to positive social change.

Where will the money go?

BLME predicts that GCC investors will be pouring their money into both commercial and residential properties, with a particular focus on the growing student accommodation sector.

• Commercial property: BLME predicts that investment in UK commercial properties will reach over $4bn annually.
• Student accommodation: A massive 68% of respondents said their clients were focused on student accommodation due to the high demand and low risk associated with this type of property.

Rashid Khan-Gandapur, director, real estate finance at BLME, explains: “We anticipate investors from the GCC will look to the UK to diversify their portfolios, and they will see profitable opportunities to invest and improve existing building stock including the enhancing of ESG credentials as a driver of value.”

Andy Thomson, head of real estate finance and private banking at BLME, adds: “The UK is very well placed to attract an increased level of inward investment from the GCC. This is a significant opportunity for UK property developers and investors.”

With all these factors in play, it seems the UK property market is set for a major boom, fuelled by the influx of GCC capital. This is a great opportunity for developers and investors who are looking to capitalise on the growing demand for UK property.