Mideast investors ‘to account for 25-30% of prime London property sales’
There is increased appetite for top London real estate since the May 7 election, CBRE says
Middle Eastern investors are expected to account for 25% to 30% of prime residential-property sales in London in the aftermath of the UK elections, according to CBRE.
London’s top real estate has become more attractive to Middle Eastern buyers since the Conservative Party won the May 7 election, the consultancy said.
“As the UK went to the polls there was some uncertainty as to the outcome, with a hung parliament looking likely. This had a direct impact on property transaction levels in Prime Central London in the months leading up to the election. Once the Conservative majority was announced, confidence returned to the market, and we have already seen a strong uptick in interest from the Middle East,” said Jennet Siebrits, Head of UK Residential Research at CBRE.
With demand slowly building, the two price brackets of interest to GCC investors are £500,000-£2 million and the £3 million to £5 million range. Prices in sub markets like that of prime central London are expected to grow by 7% in 2015, with a total growth forecast of 31% over the next five years.
But investing in London for GCC nationals is no longer about traditional golden postcodes, CBRE said. Areas such as Greenwich and Kings Cross have seen regeneration and growth with many buyers from the GCC looking to invest in cheaper locations for their children, some of whom are students.
Privacy is another key consideration for Gulf investors in the prime central London market, said Safina Ahmad, head of GCC Residential Agency at CBRE.
“It’s incredibly important for GCC families that they are able to enjoy gardens that are not overlooked. This is simply not achievable in Central London,” Ahmad told MEConstructionNews.com.
“Wimbledon and Hampstead are just two areas that offer an easy commute into central London and where large, wide-build houses offer all the space and privacy a buyer could wish for. They are also areas that are popular in their own rights because they are essentially self-contained villages.”
