Investors from the Middle East are expected to re-enter the UK’s commercial property segment as the overall economic scenario and investor sentiment is rebounding because of the Covid-19 vaccine roll out, media reports said.
It is reported that the biggest buyers in the UK real estate segment are the high-net worth individuals from the Middle East. Furthermore, a businessman from Qatar, last year paid £700 million for the iconic London Ritz Hotel.
However, Middle East capital flows into the United Kingdom have recorded a 6 percent slump to £1.4 billion last year due to the pandemic and slump in the global oil market. The second quarter of 2020 is considered as the worst period for the UK’s real estate segment because the real estate investment volumes has hit the lowest level to £32 million, since Q3 of 2010. The reports are produced by real estate agency Knight Frank.
Alex James, head of private client advisory, private office – commercial at Knight Frank, told the media, “2021 will see a recovery in [investment] volumes to £1.6 billion ($2.2 billion), representing an annual rise of 14 percent. Travellers arriving into the UK from these countries will no longer have to quarantine for two weeks, promoting opportunities for investors for when the current UK lockdown restrictions are removed in 2021. The recovery in volumes predicted for 2021.”
Global investors are keen to invest in the Uk’s real estate segment amid the current pandemic situation and in the previous few months the sentiment has increased.