Middle Eastern investors expected to pump $3.2 billion into the UK property market in 2024

It is reported that GCC investors are expected to spend $3.2 billion on UK property market in 2024. It is noted that the target for this move is to take advantage of increasing affordability and growing interest in the student accommodation sector, according to the London-based Bank of London and the Middle East.

It is a fact that the Gulf Cooperation Council economies have the financial strength for this plan as well as an appetite to diversify assets. On the other hand university-related properties are reported to be the main drivers fueling such an investment.

Said institution known to be Sharia-compliant also shared other notes behind the plan. Experts in the sector are said to predict the purpose-built student accommodation asset class will likely see the most substantial investment growth in 2023. It was also shared that the connection between Middle Eastern students with schools and universities in the UK and the low tenant failure rate make it a profitable prospect for those investors with immense funds. Thus it is forecasted that investors in the Middle East may have a golden opportunity to spot a bargain while property prices are low”.

When we look at the recorded data, we see that in 2022, both Saudi Arabia and the UAE entered the list of the top 10 countries outside the EU for students coming to study in the UK. On the other hand as the inflation rate in the UK has caused domestic mortgages to reach their highest level since the global recession in 2008, leading to less demand, this could ultimately lead to a fall in property prices, very likely.

Judging on the statements in the report London still seems to be the most preferred destination for GCC investors in the UK, but they are also considering other cities such as Manchester, Birmingham, Newcastle and Bristol.