Select Property, a leading UK-based property developer and investment partner with over 18 years of experience in the GCC, shares its insights on the benefits and opportunities for Saudi investors in the United Kingdom (UK) market. As the UK economy continues to demonstrate resilience and stability, Select Property aims to educate and inform Saudi investors about the advantages of investing in the UK.

The UK remains one of the world’s most attractive investment destinations worldwide. By offering numerous opportunities to international investors, the country has ranked as the third-best country for global investments in 2023 despite fears of a looming world recession[1]. The Kingdom of Saudi Arabia (KSA) has had a long track record of investing in Britain, and its investment of AED 78.2 billion into the UK in 2019[2] and AED 5.5 billion in 2022 exemplify this. Select Property advises KSA investors to consider the vast potential of the UK market as a means of diversifying their portfolios and building a more secure future.

The UK possesses a robust and well-diversified economy while being known for its security and long-term growth potential. Its pro-business environment, transparent legal system, and strong regulatory framework provide a solid foundation for investment. Knowing that a country is not going through massive geo-political changes, tax reform, or financial crisis mitigates risk for any potential investment. Given the UK’s stable and favorable economic conditions, investing in the country’s real estate sector presents a compelling opportunity with reduced risk and potential for financial growth. For example, Manchester boasts the best performing rental market of JLL’s Big Six (biggest UK cities outside of London) last year. The JLL Cities Index for Manchester recording 22% growth in achieved rents for new developments in the city centre in 2022.

The UK real estate market has historically been a favoured choice for investors, with its stable returns and potential for capital appreciation. According to one of the world’s leading property agents, Savills, over the next five years, UK property is expected to rise in price by 21.5%[3]. From residential properties to commercial developments, the UK offers a wide range of investment options to suit various investment strategies; additionally, more and more people are looking to rent than ever before. The concept of ‘Generation Rent’, where more and more people are opting to rent rather than buy and pay a mortgage, is in full swing across the UK, directly appealing to investors that want to build a long-term portfolio and invest in the UK. According to the Resolution Foundation, nearly 4 out of 10 ‘millennials’ are still privately renting at age 30, while nearly a third of the wider generation are expected to be renting well into retirement[4].

The appeal of the UK’s real estate sector is further enhanced by its ability to attract top talent in the workforce, thanks to the country’s renowned vibrant tech ecosystem. With a thriving community of cutting-edge startups and multinational technology companies, the demand for real estate in the UK becomes even more enticing for investors seeking to capitalize on the opportunities presented by this dynamic market. According to data from Dealroom for the Digital Economy Council, fast-growing UK tech companies have continued to raise at near-record levels and the country has now hit a market value of $1 trillion – third to do so behind the US and China[5]. With all this talent draw, it increases demand for living accommodation.

One of the most surprising investment opportunities from the UK is ‘Brexit’ as many thought the economy would plunder. However, following the UK’s exit from the European Union, new opportunities have emerged for investors. The UK government is actively pursuing trade agreements and fostering investment, making it an attractive destination for international investors seeking advantageous business prospects with some experts suggesting that prices are going to increase by nearly 19% across the UK by 2026[6].

Adam Price, CEO of Select Property, mentioned: “KSA investors have shown remarkable intelligence in diversifying their portfolios, and we believe that the United Kingdom presents a compelling opportunity for them as we’ve seen amazing returns specifically from our Affinity Living and Prestige Collection brands. The UK offers stability, innovation, and a thriving investment landscape. By exploring UK residential investments, KSA investors can tap into a robust economy, a world-class financial services sector, and a rich culture of technological innovation. At Select Property, we are committed to guiding investors through this exciting journey and helping them unlock the potential of the UK market.”

Select Property is encouraging KSA investors to explore the immense opportunities presented by the UK market. By diversifying their portfolios and taking advantage of the UK’s stability, innovation, and attractive investment landscape, KSA investors can unlock long-term growth and financial opportunities.

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