What's Driving GCC Demand for UK Property?

**Tim Elliott** (0:00)
It's the Morning Drive, UK property back on the rate of GCC investors. Interest has risen by 16%.
Westminster in London remains one of the most searched locations. More buyers are looking to diversify with stable income generating assets. Select Property has also launched Vita Living Circle Square, which is a completed residential development in the north of the countries, in Manchester, and is designed for investors seeking immediate rental returns. It says here, Hamish McAllister, Senior UK Property Consultant for the Middle East at Select Property joins me in the studio. So let's talk about what's driving demand and where investors are putting their money. But first of all, welcome. Nice to meet you.

**Hamish McAllister** (0:45)
Thank you very much. Nice to meet you as well. It's a real pleasure to be here.

**Tim Elliott** (0:48)
It was good to have you here. In terms of the macro picture, we are seeing, I think, a significant shift in sentiment. Reports show interest in UK property among investors here in the GCC, up 16%, as I said. In your view, Hamish, what's the primary driver?
Is this a sudden resurgence in appetite, as it seems to be? Is it a renewed interest in UK property, do you think, from this part of the world?

**Hamish McAllister** (1:14)
Yeah, great question. So there's always been a demand and drive there.
We've been in business over 20 years, and we've been incredibly busy, done very well over that timeframe. But given, of course, regional conflict, hostilities, it's definitely become, I guess, been brought to the front of people's minds. People are looking for a safer asset-backed investment. You know, you look at the UK real estate market, it's one of the oldest, safest in the world.
So I think really, yes, I'm not surprised it's risen by 16%, renewed interest completely. People just want to mitigate that risk. You know, don't get me wrong, the GCC is a fantastic investment. But I do think people now just need a bit of security because sometimes I speak to a lot of investors and they can be quite, let's say, UAE heavy within their portfolio. I think it's just good now to just take some of the liquidity that they might have and just put it into the UK. So I think there's really been a renewed interest from that point of view.

**Tim Elliott** (2:11)
So they're looking for a stable and income generating asset. Is it a move, is it more about capital preservation? Or is it a shift in how investors see the balance between risk and yield?

**Hamish McAllister** (2:25)
I think it's a bit of both. I really very much at the angle at the moment, we are trying to do this really for wealth preservation at the end of the day.
A lot of investors that we speak to on a daily basis are really looking to do this for their kids, grandkids, et cetera, et cetera, and further down the line. So this is really seen more as a wealth preservation right at the moment. But very good to have that diversification.

**Tim Elliott** (2:48)
Okay. I mean, Westminster consistently ranks as one of the most searched locations.
What does that tell us about the investor profile at the moment? Are they prioritizing kind of the iconic Westminster? That generates a few images in your head. Is it prime central stability or is it where kind of professional rent or demand is?

**Hamish McAllister** (3:13)
Kind of really all three of those things. But I think to go through them separately. So I think a lot of people, when they look at the UK market, particularly from the outside, international investors, they only think of London. So that's primarily where they will start looking into. It's the first port of call for any investor looking into the UK market, because they might not have been there before. They might not have been to have regional cities like Birmingham and Manchester, so they might not have the knowledge about it.
So generally seen as that is probably the first port of call into the UK market through Westminster. Of course, yes, having a trophy asset in the city is, of course, one of those things that people love to have. You know, we look at recently has been one of the biggest transactions in UK property from, I think it was the owner of Demac, who's bought a house just off Regions Park.
So again, showing the huge demand there from international investors, the confidence that they have. And again, of course, yes, you look at it from perspective of the demand for global conglomerate banks, companies who are based within the city. You know there's always going to be a rental market within London.