Saudi investors pump $144m into London’s office market

Saudi investors pump $144m into London’s office market

RIYADH: Arab investors have invested £1.2 billion ($1.68 billion) in London's office real estate market since 2018, with Saudi Arabia accounting for £103 million, according to industry data.

Figures from global real estate consultancy firm Knight Frank found that over the last decade (2010-2020), the Gulf Cooperation Council (GCC) states, excluding Oman, together invested £8 billion into London's office market, £1.2 billion of that since 2018.

Investors from the UAE have been the most active since 2018, injecting £531 million into the UK capital, followed by investors from Qatar (£435 million), Kuwait (£120 million), Saudi Arabia (£103 million) and Bahrain (£8.8 million).

"Brexit has been less of an issue, given that most investors looking at the London office market invest because of London's attractiveness as an investment destination “” relatively more favorable returns compared to other asset classes and indeed many mainland-European cities, a proven track record of delivering strong returns, the transparency of law and governance, and its strong historic and cultural links,“ Faisal Durrani, head of London commercial research at Knight Frank, told Arab News.

"That said, with weak oil prices prevailing, investors from the Middle East have been a little more domestically focused than in recent years,“ he said.

"Despite the complications