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Written by Takumi Yamazaki

As lockdown restrictions are gradually lifted with relaxation in travel rules between the UK and the Middle East, investors are eager to capitalise in London’s property market. As international travel is progressively being re-established, a more noticeable price increase within the market is anticipated, as mentioned in the previous article. Prime locations such as Notting Hill (+4.6%), Bayswater (+3.3%) and Holland Park (+2.6%) – popular with Gulf-based investors have been driving growth in the capital, which has been fuelled by high demand for larger homes with gardens (Savills).

One notable hotspot for Middle Easterners is Knightsbridge, famous not only for its luxurious residential property but also its exclusive retail channels. Regarded as a consumer’s paradise, Knightsbridge is renowned for the prosperous department stores of Harrods and Harvey Nichols, the big-name fashion designers that are located on Sloane Street. Knightsbridge is also the prime location for London’s best museums with the Science Museum, the Natural History Museum and the Victoria and Albert Museum (V&A) all very close by. The area is home to various outdoor open spaces including Hyde Park, Kensington Gardens, Royal Hospital Chelsea which is used annually for the Chelsea Flower Show.

For investors, the value of homes with 6 or more bedrooms has increased by an average of 6.2% in the last year, while 5-bedroom properties have increased by 5% (Arabian Business). Throughout the pandemic, investors from the Middle East with families searching for larger indoor space and outdoor areas due to lifestyle changes have been the driving force in the prime London property market. Middle Eastern buyers have accounted for 16% of all UK real estate purchases sold to overseas buyers in the first 3 months of this year, the highest proportion since the pandemic (Knight Frank).

Constant infrastructure improvements such as the opening of Nine Elms Station and Battersea Power Station on the Northern Line (tube) is just one of the many examples that excite overseas investors from the Middle East. Hence, the emphasis on the latest pattern of 12 multiple property purchases in the last six months from Middle Eastern family offices, compared with one in the 12 months before (The National News). London has always proven so resilient regardless of all the vagueness Brexit has brought, it has ultimately led to a weakened pound. The attractiveness of the sterling-to-dollar-base currencies make it a very good proposition at the moment too (Mansion Global).

For more updates and information about investment opportunities in London, please get in touch with us at Falcon Investments.

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