Estate agents in London say they have seen a significant upturn in enquires from the Gulf region.
Rosy Khalastchy, director at Beauchamp Estates, says: “Buyers from the Gulf region are currently the largest group of buyers for luxury homes in Central London, especially for homes priced above £15 million.
“Gulf buyers currently account for 25% of all £15 million plus home sales across London, up from 20% in 2024.
“They are the largest buyer group, followed by American purchasers.”
There are three distinct types of buyers from the Gulf who both own and also rent homes in London. The first group are domestic Gulf nationals, in particular from the United Arab Emirates and Saudi Arabia.
The next group are Indian, Pakistani, Yemeni, Lebanese and UK expats, who are now based in the Gulf, but either own or rent second homes in London.
The third group are wealthy Israelis, who own or rent homes in the UK capital.
“Since the current Gulf crisis began two weeks ago, Beauchamp Estates has seen a 15% rise in enquiries, both for homes for purchase and to let, from Gulf nationals, and also Indian, Pakistani, Lebanese and other nationals who are based in the Middle East” she adds.
There has also been a 10% rise in enquiries from Gulf based UK nationals who in the last five years have relocated to live in Dubai and Abu Dhabi.
Over 4,000 people have returned from the Gulf to the UK and 140,000 UK nationals based in the Middle East have registered their presence with the UK Foreign Office, including 112,000 based in the UAE.
It is estimated that some 240,000 British nationals live in the United Arab Emirates, most in Dubai and Abu Dhabi.
Mark Pollack, co-founding director of London agency Aston Chase, adds: “The conflict has not surprisingly been a very abrupt reality check for many who have been lured to Dubai predominantly due to the tax-free regime, climate and perceived lifestyle.
“I sense that it is helping us to get existing deals over the line, and has boosted the morale of vendors who have endured a torrid time in recent years.
“[They have had the] implications of a Labour Government and ensuing flight of wealth due to non-dom and inheritance tax legislation and the 19% Stamp Duty Land Tax for international purchasers.”
Pollack warns that a market crash or significant correction is widely anticipated in Dubai.
“Dubai feels like a disproportionately inflated market, and the current conflict will inevitably result in some people reconsidering where might be the safest place to bring up a family over and above the obvious financial attractions of Dubai.
“Consequently, I think the crisis will indirectly have a positive impact for the London property market which would, ironically, represent a timely and long overdue boost.
“The safety implications highlighted by the conflict in the Middle East and the impact on the economy arising from the oil market speculation may well, after an initial period of uncertainty, result in people recognising that investing in bricks and mortar in London is a relatively safe bet.
“Living in London, arguably one of the safest, most tolerant and cultural cities in the world isn’t such a bad option after all.”
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