London property remains the crown jewel for wealthy Gulf investors

London remains the number one international city for Gulf Cooperation Council (GCC) property investors with capital pouring in to take advantage of cut-price deals, according to the latest GCC Investment Barometer from AlRayan Bank.

The Bank’s third annual research, which surveys 150 high-net-worth investors from Saudi Arabia, Qatar and the UAE with a minimum £10 million in wealth and/or assets, found that 29% invested in London property in the last 12 months, ahead of New York (23%), Paris (23%), Los Angeles (22%) and Tokyo (21%). 

• 29% bought London property in the last 12 months, more than any other global city.
• 93% report rising confidence in the UK market, supported by five Bank of England rate cuts, falling prime London prices and a housing shortage driving rental yields.
• Demand is increasing for investment opportunities outside London.
• Experts at AlRayan Bank say investor sentiment remains almost universally positive despite global instability, with opportunities in prime London, commercial upgrades and the regions where affordable entry points and higher yields are attracting capital.

The findings show that almost all (99%) GCC investors will make new or increased investments over the next five years, with retail property (44%), hospitality and leisure (36%) and student accommodation (34%) topping the targets list. 

Confidence in the UK property market is high, with 93% saying this has increased in the last 12 months following 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 push up rental yields. 

The Bank says that the introduction of visa-free travel for GCC nationals and the UK’s relatively low 24% Capital Gains Tax rate have added to the UK market’s draw.

Giles Cunningham, CEO of AlRayan Bank, the UK’s oldest and most successful Islamic bank, said: “London’s status as the top global destination for GCC property investors comes as no surprise; its unmatched blend of lifestyle, security, and strong returns continues to set it apart.

This year’s report highlights not only enduring confidence in London’s property market, but also a growing appetite for opportunities across the UK’s towns and cities.

Beyond the numbers, the deep-rooted ties between the GCC and the UK, built on trust, shared values, and long-standing partnerships, continue to underpin investor confidence and drive long-term engagement.”

While investor demand is strong across all three countries surveyed, confidence in the financial services supporting that demand differs significantly. In Qatar, 78% of investors say the services available - particularly those supporting international investment - are well tailored to their needs, followed by 52% of investors in the UAE. In contrast, only 40% of Saudi investors feel similarly, pointing to a clear opportunity to enhance financial services in support of outbound investment.

Within the capital, investor preferences are shifting. While central London still attracts the largest share (38%), East London (36%), the suburbs (33%) and North London (29%) are increasingly on the radar, reflecting regeneration projects and improved transport links.

While London remains the frontrunner, GCC investors are broadening their focus across the UK. Liverpool is the top regional hotspot for the third consecutive year followed by Cardiff, Brighton, Birmingham and Edinburgh. 

Strong returns and rental growth are the leading investment drivers (57%), closely followed by favourable purchase terms (56%). Sustainability is also climbing fast on the agenda, with 95% of investors seeking green investments and factoring environmental performance into their decisions.

Maisam Fazal, Chief Commercial Officer at AlRayan Bank, said: “The enduring strength of GCC investment in the UK is built on more than market fundamentals - it is also about trust and the quality of service investors receive.

“AlRayan Bank has become the partner of choice because we combine deep regional understanding with tailored, Sharia-compliant finance solutions that evolve with client needs. This differentiated approach means we are uniquely positioned to help investors unlock opportunities across London and beyond.

“As the findings show, London will remain the benchmark for global real estate, but the regions are playing an increasingly important role in portfolios. 

“The deep ties between the GCC and the UK - built on trust, friendship and integrity - remain a defining feature of this relationship and will continue to underpin investor confidence for years to come.”

The full report can be accessed https://www.alrayanbank.co.uk/sites/default/files/media/file-uploads/20…