Gulf investors shift UK property focus to income assets

Gulf investors are rebalancing UK real estate portfolios toward income-generating assets including property development, retail and affordable housing, according to AlRayan Bank UK's 2026 GCC Investment Barometer published October 15, 2026. Property development attracted 30 percent of respondents as a future investment priority, followed by retail at 29 percent, social or affordable housing at 28 percent, and build-to-rent developments at 24 percent. Student accommodation and industrial and logistics properties each attracted 23 percent of respondents.

UAE respondents report highest confidence increase#

Among UAE respondents, 96 percent reported increased confidence in UK property over the preceding 12 months, the highest share across the three Gulf markets in the survey. Looking forward, 92 percent of UAE respondents expect UK property to deliver strong investment returns over the next five years. Among those considering London, professional services attracted 56 percent, long-term appreciation potential drew 48 percent, and the same proportion cited the ability to relocate or reside in the city.

Saudi investors plan £98.5 million average allocation#

The average planned UK property allocation among Saudi respondents stands at £98.5 million over the coming five years, an increase from £81.9 million in 2025, the report found. Property development was identified as a priority by 37 percent of Saudi respondents, compared with 28 percent of UAE respondents and 24 percent of Qatari respondents. The average planned investment across all three markets reached £78.3 million over the next five years.

Regional cities attract increasing interest beyond London#

Liverpool attracted interest from 34 percent of respondents considering regional investment, followed by Birmingham at 27 percent and Manchester at 25 percent. The report found that 99 percent of respondents intend to make new or increased UK property investments over the next five years, while 95 percent expect the market to remain a strong investment opportunity. Affordability, rental income, transport connectivity and local economic conditions were cited as increasingly important factors in investment decisions. Maisam Fazal, Chief Commercial Officer at AlRayan Bank UK, said investors in the UAE are increasingly assessing opportunities across international markets, with greater attention to asset quality, financing costs and long-term returns.