Survey Finds 29% of GCC Investors Bought London Property in 12 Months

Dubai | London – October 4, 2025: High-net-worth investors across the Gulf Cooperation Council (GCC) continue to direct capital into London’s real estate market, taking advantage of attractive valuations and steady rental yields, according to the latest GCC Investment Barometer by AlRayan Bank.

The third annual study surveyed 150 high-net-worth individuals from Saudi Arabia, Qatar, and the UAE, each with a minimum wealth or assets of GBP 10 million (USD 12.8 million). The report revealed that 29% invested in London property in the last 12 months, ahead of New York (23%), Paris (23%), Los Angeles (22%), and Tokyo (21%).

Key Drivers of Confidence in the U.K. Property Market

Nearly all GCC investors surveyed plan to make new or increased investments in the next five years, with retail, hospitality and leisure, and student accommodation among the top targeted sectors.

Confidence in the U.K. property market remains robust, with 93% of investors saying their optimism increased over the past year. This follows five consecutive Bank of England base-rate cuts, a price correction in prime London districts such as Mayfair, Chelsea, Westminster, and Belgravia, and an ongoing housing shortage driving rental yields higher.

Visa-free travel for GCC nationals and the U.K.’s relatively low 24% capital gains tax have also strengthened London’s appeal among regional investors.

“The question we hear most from GCC investors is no longer where to buy, but how to execute with speed, certainty and control,” said Maisam Fazal, Chief Commercial Officer at AlRayan Bank. “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.”

London’s Continued Appeal

London remains a top destination for GCC investors due to its cosmopolitan appeal and international accessibility. The city’s world-class retail, hospitality, and entertainment sectors, coupled with its temperate climate, educational opportunities, and robust infrastructure, continue to attract affluent buyers from the Gulf.

Beyond its lifestyle advantages, London offers a wide array of real estate options, from ultra-modern apartments in regenerated neighborhoods to historic townhouses in established districts catering to a range of investor preferences.

32% of Saudi Investors Plan $100 Million+ Investments

Investor demand remains strong across the GCC, though confidence in financial services varies between markets. In Qatar, 78% of investors said local financial services effectively support international investment, compared to 52% in the UAE and just 40% in Saudi Arabia.

Despite this, Saudi investors remain the most active in high-value real estate, with 32% planning to invest USD 100 million or more over the next five years.

The report identifies service gaps in Saudi Arabia, particularly in private banking and structured wealth management, though demand for long-term, Sharia-compliant investment strategies is growing among younger, tech-savvy Saudis.

GCC Investors Expanding Beyond London

AlRayan Bank’s research shows strong growth in Saudi-originated business, with Home Purchase Plan Premier (HPPP) volumes climbing from 16% in 2020–2021 to 69% by 2025. Structured Real Estate activity across the GCC has also increased by 80%, driven largely by Saudi investors targeting prime London assets.

While central London remains the preferred location, interest is expanding into East London, North London, and suburban areas due to regeneration projects and improved transport connectivity.

Across the UK, Liverpool remains the leading regional investment hotspot for the third consecutive year, followed by Cardiff, Brighton, Birmingham, and Edinburgh.

Strong rental returns and rising property values remain the key motivators for GCC investors. Sustainability is also becoming a significant consideration, with 95% of respondents prioritizing green investments and incorporating environmental performance into their investment decisions.