High-net-worth investors across the Gulf Cooperation Council (GCC) are accelerating their exposure to London property, with value-driven opportunities and shifting market conditions driving strong demand.
According to the latest GCC Investment Barometer from AlRayan Bank, 29 per cent of surveyed investors from Saudi Arabia, Qatar and the UAE invested in London property in the past 12 months.
This puts London ahead of New York (23 per cent), Paris (23 per cent), Los Angeles (22 per cent) and Tokyo (21 per cent).
GCC investors eye London property
The third annual survey of 150 investors — each with a minimum of £10m ($12.2m) in wealth and/or assets — found that 99 per cent intend to make new or increased investments over the next five years.
Retail property (44 per cent), hospitality and leisure (36 per cent) and student accommodation (34 per cent) were the top targets.
Investor confidence in the UK property market has strengthened, with 93 per cent reporting higher confidence over the past year.
This is underpinned by five Bank of England base-rate cuts, falling prices in prime London postcodes such as Mayfair, Chelsea, Westminster and Belgravia, and a housing shortage that continues to lift rental yields.
Visa-free travel for GCC nationals and the UK’s comparatively low 24 per cent Capital Gains Tax have also added to the appeal.
Maisam Fazal, Chief Commercial Officer at AlRayan Bank, said: “The question we hear most from GCC investors is no longer where to buy, but how to execute with speed, certainty and control.
“Clients from the Kingdom of Saudi Arabia, and across the region, are increasingly focused on securing the right opportunities, delivered through structures that align with their values and governance frameworks.
“At AlRayan Bank, we’re enabling this through Sharia-compliant club deals, off-market transactions and partnerships with proven operators to drive performance from day one.
“There is growing demand for sustainable investments and assets, and we’re proud to support our clients with tailored solutions that protect long-term value.
“Our in-country presence ensures we stay close to investor priorities and continue evolving with their needs.”
London property attracts HNWI
While demand is strong across Saudi Arabia, the UAE and Qatar, investor confidence in financial services varies.
In Qatar, 78 per cent of investors say services — particularly those supporting international investment — are well tailored to their needs, compared to 52 per cent in the UAE.
Only 40 per cent of Saudi investors report similar confidence, despite being the most committed to high-value deals, with 32 per cent planning to invest $100m or more over the next five years.
The report highlights gaps in Saudi Arabia around private banking and structured wealth solutions. However, younger digitally savvy investors are driving change, with growing interest in long-term, Sharia-compliant strategies.
AlRayan Bank has reported sharp growth in Saudi-originated business. Home Purchase Plan Premier volumes rose from 16 per cent in 2020–21 to 69 per cent by 2025, while Structured Real Estate activity across the GCC recorded an 80 per cent uplift, led largely by Saudi clients targeting prime London assets.
Beyond central London property
Investor preferences are diversifying within the UK capital. While central London still attracts the largest share (38 per cent), East London (36 per cent), the suburbs (33 per cent) and North London (29 per cent) are gaining traction, reflecting regeneration projects and transport upgrades.
Outside London, GCC investors are also widening their focus. The AlRayan Bank survey ranks Liverpool as the top UK regional hotspot for the third consecutive year, followed by Cardiff, Brighton, Birmingham and Edinburgh.
Returns and rental growth (57 per cent) remain the top investment drivers, followed by favourable purchase terms (56 per cent).
Sustainability is also rising on the agenda, with 95 per cent of investors factoring green credentials into decisions.
Fazal said: “Across Saudi Arabia, the UAE and Qatar, our clients are sharpening their focus on London and a handful of strong UK regional cities.
“They’re prioritising transparent markets, stable income and long-term capital growth – and the UK continues to offer that mix.
“Over many years we’ve built strong trusted relationships in Qatar and the UAE, and we’re now expanding our on-the-ground presence in Saudi Arabia which is an exciting next step in our journey.”