GCC Investment in UK Property Sector to Surpass $4 Billion

Real estate investors from the Gulf region, specifically GCC investors, are targeting retirement homes, student accommodations, and rental schemes in the United Kingdom, a new report suggests.

The report reveals that 70 percent of experts interviewed indicate GCC investors are zeroing in on asset classes within the UK living sector, including retirement living, private rental schemes, co-living, and purpose-built student accommodation.

GCC Investment in UK Commercial Property to Surge

GCC investment in UK commercial property could surpass $4 billion annually, up from the 10-year average of $3.4 billion, driven by factors such as anticipated interest rate cuts and attractive asset valuations.

The attraction to the living sector is further bolstered by demographic trends and market fundamentals, with an ageing population and a persistent housing shortage driving sustained appetite for private rental schemes.

Johan Eriksson, Managing Partner at Oryx Real Estate Partners, comments in the report, “The prospect of interest rate cuts along with a more appealing entry point and continued rental growth will attract GCC investors to the UK market.”

The findings also touch on the potential for investors to capitalize on the “Green premium” by purchasing and upgrading assets to comply with the UK’s new environmental requirements.

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