Savills Showcases London to Investors Across the MENA Region
Date Posted: Thu, 31 Oct, 2019
The event was part of a roadshow organised by Savills Middle East, to showcase the City of London to the MENA region.
SAVILLS SHOWCASES LONDON TO INVESTORS ACROSS THE MENA REGION
One of the world’s leading real estate advisors, Savills Middle East, together with international law firm, Trowers & Hamlins and Barclays Bank, hosted UAE investors at a high profile event at the Capital Club Dubai last week.
The event was part of a roadshow organised by Savills Middle East, to showcase the City of London to the MENA region. Commencing in the UAE’s capital of Abu Dhabi a few weeks ago, the team has since hosted high profile events in Muscat and Cairo, with further events to follow in Bahrain, Saudi Arabia and Kuwait in the near future.
Advisors at the event presented the latest Q3 research, which clearly shows the impact of, and opportunities presented by, the ongoing Brexit negotiations and uncertainty. Buyers are remaining cautious at this time of political uncertainty, which in turn has resulted in a 10% reduction in prime London property being publicly marketed. This lack of prime space for developments in the city has served to drive demand further from Middle East investors.
“Buyers from the MENA region have always loved London. The capital attracts lots of people who wish to make London their home away from home” commented Andrew Hawkins, Director International Residential Development, Savills UK. “Whether the UK leaves the EU or not, the fundamental reasons why buyers from across the Middle East and elsewhere want to invest in London will not change. London is the global city, the world’s leading financial services hub and has more top rated education institutions than anywhere else. The current weakening of the Pound has provided a significant opportunity for international buyers to invest and to invest now.”
In the last three months, to the end of September 2019, the drop in prime housing prices in central London has been minimal, at only 0.3% during this period. This is the lowest quarterly adjustment in the past four years and has only served to drive further demand as speculation grows that the market is bottoming out.
Buyers from the Middle East are not just looking at prices however, location and amenities remain as critical a deciding factor as ever, as the demand for developments such as King’s Road Park (with its two in-house cinemas, 25m swimming pool, gym, spa, and golf simulator) and Triptych Bankside (the cultural and transport hub near to Borough Market, Shakespeare’s Globe Theatre, the Tate Modern and The Shard) demonstrate.
Transport links and sustainability elements are proving to have significant influence on the Middle Eastern investor. As the market stables out, developers have responded to the demand with regeneration sites at the forefront. Regeneration projects that also benefit from good rail links have strong appeal. Developments such as Grand Union, which is part of a canalside regeneration project with 11 acres of public green spaces and waterside walks, and the iconic Battersea Power Station, are transforming the local landscape and creating thriving communities and truly sustainable neighbourhoods and work hubs.
Key developers such as those listed have recently launched projects in response to the current demand seen by buyers in London and onshore in Dubai who are looking to take advantage of this opportunity. As a multicultural city that thrives off diverse nationalities and foreign investment, these developers are embracing investors from the region, ensuring transparency and making security a priority in their developments, in order to provide peace of mind for those overseas.