According to a recent estimate, the positive economic conditions in the UK are projected to attract investors from the Gulf Cooperation Council, who are predicted to invest over $4 billion annually in the commercial property sector.
According to an investigation by the Shariah-compliant financial institution Bank of London and The Middle East, located in the UK, a number of variables, including declining interest rates and reduced property prices, which increase the appeal of UK assets, might be blamed for this funding boom.
GCC investors, who are mostly from Saudi Arabia and the UAE, invested $2.35 billion in UK real estate in 2023 alone.
“The UK has a new government in place, the Brexit decision from 2016 is firmly in the rearview mirror, and the economic and political landscapes have a relatively stable outlook compared to other countries in Europe,” stated Andy Thomson, head of real estate finance and private banking at BLME.
“Moreover, it is anticipated that interest rates will decrease in 2024 and 2025, which when combined with reduced prices for commercial real estate, positions the UK to draw in a greater amount of foreign investment from the GCC.”
The Bank of England lowered interest rates for the first time since 2020 following the publication of the study, bringing the base rate down by 0.25 percentage points to 5%. This demonstrated the report’s prophetic significance.
Also Read:
Residential Property Sales in Dubai have Increased by more than 33%, According to Brokerage Firm
ITA Airways, the Flag Carrier of Italy, Begins Nonstop Flights from Rome to Jeddah
