Gulf Investors Home In On London

On the tree-lined streets of Knightsbridge, imposing redbrick mansions and white stucco villas loom over one of London’s most sought-after neighbourhoods.

Stroll from Harrods towards Brompton Square, and the properties you pass will be owned by a certain class of homeowner: wealthy investors from the Gulf. Over the past decade, buyers from Qatar, the United Arab Emirates (UAE), Bahrain, Kuwait and Saudi Arabia have helped London’s high-end property market boom.

Now with bombs raining down on the Middle East, there's more uncertainty about whether the money that fuelled London’s property boom will continue to roll in.

Gulf nationals are a key driver of London’s prime residential property market, focusing on areas such as Knightsbridge, Belgravia, Kensington and Mayfair.

According to some estimates, they are the biggest group of overseas buyers for luxury homes in central London, accounting for a quarter of mansions sold above £15m across the capital over the past decade.

It's not confined to high-end homes, either. Qatar’s sovereign wealth funds own some of the capital’s most celebrated landmarks, including The Shard, Canary Wharf and – along with Saudi Arabia – a slice of Heathrow Airport.

Investors have also poured millions into office and warehouses. Research from the BLME – the UK’s largest Islamic bank – estimates that Gulf investment into the UK’s commercial properties will reach £3.4bn by the end of this year.

The war is only in its early stages, but agents say rather than stopping investment, the conflict could prompt greater numbers of Gulf nationals to buy London property.