UK eyes return of Middle East investors in 2021

UK eyes return of Middle East investors in 2021

JEDDAH: Middle Eastern investment in the UK has always been active, and despite the economic turmoil brought about by the coronavirus disease (COVID-19) pandemic, British real estate companies reported a noticeable rise in buyer interest in June and July.

The virus outbreak and falling oil prices led to a decline last year in outbound global commercial real estate investment in the Middle East.

COVID-19 and travel restrictions in the region had a significant effect on UK commercial real estate levels, with a total of £32 million ($43 million) in second-quarter (Q2) investment from the region, its lowest level since Q3 2010.

Alex James, head of private client advisory, private office commercial at Knight Frank, said with the opening of the borders between the UK, the UAE, and Bahrain in November, real estate demands from investors would increase.

"Travelers arriving in 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.

"We estimate that the year-end total transaction volume for Middle East capital into the UK is around £1.4 billion, down 6 percent on last year. The recent recovery in transactions seen in Q3 will unfortunately not continue into