Will Dubai Investors Take Advantage of the Fall of UK’s Real Estate?

Investors in Dubai have a good interest investing in the UK. As the UK experiences depreciation following effecting Article 50, will Dubai investors look into investing in the UK as the GBP depreciates as a result of Brexit? Following the Brexit referendum last year, there has been a 16 per cent fall in the value of commercial real estate in the UK. Head of residential at JLL MENA mentioned that “In the Middle East, we find that Gulf-based investors and owner-occupiers have always had a tremendous affinity for the UK as a place to invest and to spend time. The capital largely flows into London from these potential investors, but there has been increasing interest in cities such as Birmingham and Manchester in the last couple of years.”

Making the UK more attractive, there has been an increased depreciation of the GBP since Article 50 was effected to commence the big act of pulling the UK out of EU. This has increased the interest of investors from the Middle East.

Ben Burston, head of UK office and capital markets research at JLL, said: “Private investors have responded to the depreciation more than institutions and global asset managers, and as a result they have become a more important driver of market sentiment and pricing.” The UK is already known to be a home for international investors – In 2016, 51 per cent of transactional activity within the UK market came from international investors. As the real estate sector falls together with the GBP, it is very likely and expected that investors from Dubai will strengthen their desire to establish investments in the UK.

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