A new study by Sharia’a-compliant bank Nomo and property search portal Rightmove has shed light on the preferences of Gulf Cooperation Council (GCC) buyers in the UK property market.
The research, spanning from 2019 to 2024, reveals that GCC residents significantly dominate international demand for UK property, accounting for 11% of all enquiries despite their relatively small population.
According to the report titled “Global Neighbours: Why GCC Buyers are Purchasing UK Residential Properties,” Glasgow and Westminster stand out as the joint most popular local authorities for GCC enquiries, each comprising 5.8% of total searches. London, with six of the top 20 local authorities, remains the preferred choice for these buyers, showcasing a clear capital-centric trend.
However, the study also highlights the appeal of cities beyond London, with Liverpool and Manchester in the North West also featuring in the top five, likely due to more accessible entry prices and promising rental yields.
The data further breaks down the origin of these enquiries, with Saudi Arabia, the UAE, and Qatar being responsible for 86% of GCC-based interest in 2024 up to August. Notably, the UAE has consistently led in demand, representing over 59% of searches from the GCC countries since 2019. Saudi Arabia has shown a remarkable increase in property search interest, rising from 10% to 17% over the five-year period.
The geographical preferences of GCC buyers also vary by their home country. Residents from Saudi Arabia, Kuwait, and Bahrain show a strong inclination towards London properties, while those from the UAE, Oman, and Qatar are more interested in Glasgow’s real estate.
Layla Hamidian, head of property finance sales and servicing at Nomo, said: “GCC buyers have long held an affinity for the UK, and our research proves that this appetite is showing no signs of abating, particularly for those based in Saudi Arabia and the UAE. To capitalise on this, there needs to be clearer guidance for GCC residents who might be looking at UK property purchases for the first time. They might not be accustomed to the meticulousness of the UK’s legal processes or costs.”
She further added: “It’s the role of brokers, intermediaries and property finance providers to work together to educate and inform GCC customers about the opportunities in UK property investment, and how to avoid potential cultural, financial and regulatory pitfalls.”
