- GCC investors are expected to pump $3.2 billion into the UK real estate landscape in 2024
- 65% KSA investors prioritise real estate as their preferred investment strategy
- 75% KSA investors favour cities like Manchester and Birmingham
Riyadh, KSA – 22 July 2024: A recent survey by Select Property, a leading UK-based property developer and investment partner, reveals that 73% of KSA investors are eyeing lucrative opportunities in UK real estate, underscoring the country’s status as the premier global destination for KSA investors. With projects of GCC investments reaching $3.2 billion in 2024, driven by the market’s increasing affordability, the UK remains a magnet for investment1. The GCC has largely contributed to this projection by realizing the vast potential of UK property as an investment vehicle for diversification.
The annual GCC investment in UK property has averaged $3.4 billion over the past decade2, reflecting robust demand, reliable investment returns, substantial rental growth, and a diverse range of assets. Adam Price, CEO of Select Property, highlights that 75% of KSA investors favour cities like Manchester and Birmingham, which are considered the best places to invest in the UK. Price growth in these cities is expected to reach 19.2% and 19.3%, respectively3. The UK and its property market attract savvy GCC investors as a proven method of diversification and diversification into the UK market allows KSA investors to spread risk and tap into stable and growing real estate opportunities.
“Increasingly, GCC investors are recognizing the UK as an attractive investment hub,” stated Price. “Our survey shows that 73% of KSA investors have considered investing in UK real estate, particularly in Manchester and Birmingham. These cities offer compelling opportunities with significant price growth and rental yield potential.”
According to the Select Property survey, 65% of investors prioritise real estate as their preferred investment strategy, aligning with Select Property’s commitment to providing tailored investment solutions. The survey also revealed that nearly nine out of ten (90%) KSA investors look at the UK as their key investment destination, with 85% expressing growing confidence in the country’s real estate sector.
Adam Price further commented, “We’ve already witnessed a surge in investor interest following the recent launch of the Electronic Travel Authorization4, further solidifying GCC investors as integral to the resilience and attractiveness of the UK real estate market. Over the past two decades, Select Property has facilitated access to high-quality UK real estate assets for savvy investors, and we look forward to leveraging our expertise to continue providing tailored investment solutions that align with the preferences of investors in Saudi Arabia and the wider GCC.”
While the average rental increase nationwide stands at 11.1%, key English cities like Manchester, Birmingham, and Bristol are poised for annual rental growth rates of 18% through 20275. These cities benefit from significant regeneration efforts, expanding job markets, and strong rental demand.
In a move to further engage potential investors, Select Property will host a summer VIP event launch in London at the Mandarin Oriental Hotel on 25th July, where the company will unveil their latest project. The event is poised to attract significant interest from the GCC investors, reinforcing the UK’s appeal as a prime investment destination. Interested parties can register for the event at this link.
Since 2004, Select Property has been developing world-class branded residences in some of the UK’s most desirable cities, including Manchester and Birmingham. While Saudi citizens have long regarded the UK as a desirable market for secondary investment, Select Property has observed an uptick in interest recently; specifically, as it relates to investment in luxury branded residences. Their renowned brands, such as Affinity Living, CitySuites, The Prestige Collection, andOne Port Street have been well-received by global clients.
