The UK real estate market “continues to attract a wide range of Qatari investments,” specifically the residential and commercial sectors, according to a local businessman.
“Property prices have been on the slide since late 2015 and European currencies have depreciated 20% to 30% against the US dollar. Since the Qatari riyal is pegged to the US dollar, opportunities to purchase or invest in properties this 2017 continue to be very attractive,” said Qatari businessman Farhan al-Sayed.
“Considering that the UK is a favourite investment destination for many Qataris, a depreciated British pound post-Brexit has created a market for newcomers who want to get on the property ladder…it is actually a win-win situation for Qatari investors and the British economy,” al-Sayed told Gulf Times on the sidelines of three-day Cityscape Qatar 2017, which concludes today.
Immediately after Brexit, global real estate services firm DTZ had recorded a 25% increase in property inquiries from Qataris, including other GCC investors from Dubai and Saudi Arabia.
Many property investors from the Gulf are “making the most” of the devaluation of the British pound and the decrease in real estate asking prices, said DTZ surveyor (valuation advisory) Ravvy Kaur, citing a report from DTZ’s London team during a
forum last year.
Many Qataris, according to Kaur, invest in commercial and residential properties in prime locations like the West End of London, Mayfair, Kensington, Richmond, and some of parts of North and East End, and Canary Warf.
“The first approach is to buy property and rent it out for additional income as an investment property, while the second method is to invest in a residential property in the UK to have a home within London in high-quality townhouses within prime areas like Kensington and Richmond,” she said.
According to al-Sayed, the UK’s real estate market, which he described as a “friendly business atmosphere,” also attracted investments from the Qatari middle class sector. “This is also an opportunity for young enterprising Qataris to climb the international property ladder,” he pointed out.
In late 2013 to early 2014, international real estate agency Chestertons noticed that Qatari investments had expanded to new locations in the UK.
In a previous report at Gulf Times, Chestertons global director of International Residential Developments Samuel Warren said some reports claimed that investors are even interested in “second tier locations” and areas further out to the east of London.
Qatari portfolios in the London property market have expanded to include investments not only from owning residential homes but also a keen interest in capital growth from lower value properties, Warren said.
Al-Sayed also lauded the objectives of ‘Cityscape Qatar 2017’, which showcased new real estate projects from 85 exhibitors from 25 countries, including Qatar, UK, Turkey, Pakistan, UAE, Italy, Spain, Dubai, and Azerbaijan, among others.
“The payment plans are directly from the developers or landlords and are offered at very attractive prices. These payment plans do save a lot of money both for the developers and buyers as they save up on high interest rates paid to the banks,” he explained.