Rising oil prices, a low pound and the continuing magnetism of British capital have combined to boost Middle Eastern property investment in London, states a new report.
“London is still seen as a safe place to diversify if you are from places like the Gulf states,” said one senior property professional. “As we enter the final month of 2017, there is evidence that the level of investor demand focussed on London’s real estate market remains high.”
Central London addresses offer “security and long-term growth prospects and are unlikely to be affected by Brexit worries,” said property investment agent Gregor Wallace.
In Qatar, diplomatic and commercial isolation by the country’s neighbours has limited investors’ options. This will mean increased investment into London, believe real estate commentators.
“The political fall-out with their neighbours will inevitably lead to less cross-border investment activity locally, and coupled with higher levels of liquidity from the rising oil price, we expect to see more capital flowing out of Qatar,” said one. “The UK will be one of the first ports of call, and much of it may go into property.”
Qatari investors have already funded major projects in London, including the Shard and the Olympic Village. Altogether, Qatari investors own 879 properties in London totalling around 26 million square feet.
