Property development tops investment preferences at 30%, followed closely by retail at 29%, as affluent Gulf investors increasingly prioritise steady returns, affordable housing projects and commercial real estate opportunities in the UK.
Dubai: High-net-worth investors from the UAE and other Gulf countries are increasingly moving away from luxury residential properties in favour of UK real estate assets that offer consistent rental income and long-term financial returns, according to AlRayan Bank UK’s latest GCC Investment Barometer 2026.
The fourth edition of the annual report indicates a growing preference for property development, retail spaces, affordable housing and commercial real estate, reflecting a shift towards investment opportunities with stronger income-generating potential.
Property development emerged as the most preferred sector for future UK real estate investment, selected by 30 per cent of respondents, closely followed by retail properties at 29 per cent.
Social and affordable housing, hospitality and leisure properties, and personal residential real estate each attracted interest from 28 per cent of those surveyed.
Meanwhile, build-to-rent developments were identified as a priority by 24 per cent of respondents, while student accommodation and industrial and logistics properties each received 23 per cent.
The findings indicate that Gulf investors are increasingly diversifying their UK property portfolios, focusing on sustainable returns, asset performance and long-term financial growth rather than concentrating primarily on prestigious addresses.
UAE investors express strong confidence in UK real estate
The report revealed particularly strong optimism among UAE-based investors regarding the prospects of the British property market.
An overwhelming 96 per cent of UAE respondents said their confidence in UK real estate had strengthened over the past 12 months, representing the highest level recorded among the three Gulf markets included in the survey.
Additionally, 92 per cent of UAE investors believe UK property will continue to offer attractive investment opportunities over the next five years.
London remains a major destination for UAE capital, although investors are increasingly evaluating the city’s broader economic advantages alongside potential property returns.
Among UAE respondents considering investments in London, 56 per cent identified access to professional services as a key attraction.
A further 48 per cent highlighted the potential for long-term capital appreciation, while an equal proportion cited the opportunity to live in or relocate to the city.
Maisam Fazal, Chief Commercial Officer at AlRayan Bank UK, said UAE investors are taking a more considered approach to international property investments.
He noted that factors such as asset quality, borrowing costs and the potential for sustainable long-term returns are becoming increasingly important when assessing opportunities in overseas markets.
Saudi investors prioritise property development
The report also identified significant interest in UK property development among investors from Saudi Arabia.
Approximately 37 per cent of Saudi respondents selected property development as a future investment priority, compared with 28 per cent of UAE investors and 24 per cent of respondents from Qatar.
Saudi investors are also planning to increase their financial commitments to the UK property market.
According to the survey, Saudi respondents expect to invest an average of £98.5 million in UK real estate over the next five years, compared with £81.9 million reported in 2025.
Across the UAE, Saudi Arabia and Qatar, the average planned property investment stood at £78.3 million.
These figures suggest that Gulf investors continue to see opportunities in the UK market, with Saudi respondents indicating particularly substantial future investment plans.
Gulf investors explore opportunities beyond London’s luxury market
Although London continues to attract considerable interest from Gulf investors, the report found growing demand for real estate opportunities in other major UK cities.
Liverpool emerged as the most popular regional destination, attracting interest from 34 per cent of respondents considering investments outside London.
Birmingham followed with 27 per cent, while Manchester attracted 25 per cent.
The increasing appeal of regional cities reflects investors’ focus on factors that can support long-term property performance.
According to the report, affordability, rental yields, transport infrastructure and local economic conditions are becoming more influential in determining where Gulf investors allocate their capital.
Rather than relying primarily on the prestige associated with high-end London properties, investors are increasingly examining opportunities that offer recurring income, commercial potential and long-term value.
The findings highlight a broader change in Gulf investment strategies, with UAE, Saudi and Qatari investors placing greater emphasis on diversified portfolios and income-producing assets across the UK property market.
AlRayan Bank UK said its clients are increasingly exploring mid-market properties and investment opportunities outside London, particularly in locations where strong tenant demand and reliable rental income can support long-term financial goals.
The trend reflects a growing preference for properties offering sustainable returns rather than investments driven primarily by prestige or high-profile addresses.
99% of Gulf investors plan further UK property investments
Despite evolving investment strategies, confidence in the UK property market remains strong among wealthy investors from the Gulf region.
According to the report, 99 per cent of respondents intend to make new investments or increase their existing UK property holdings over the next five years.
Meanwhile, 95 per cent believe the British real estate market will continue to offer attractive investment opportunities during the same period.
Geopolitical developments are also playing an important role in shaping investment decisions.
The survey found that 51 per cent of respondents said regional instability had made them more inclined to invest in UK property, while 38 per cent indicated they were diversifying their investments into other international markets.
These findings suggest that geopolitical uncertainty is encouraging some Gulf investors to consider UK real estate as part of their broader investment strategies, while others are spreading their capital across multiple markets.
Investors increasingly focus on sustainable long-term returns
The research highlights a shift in how high-net-worth Gulf investors assess property opportunities, with greater attention being paid to consistent income generation, asset performance and long-term value.
Rather than selecting properties based mainly on their location or prestigious reputation, investors are increasingly examining their ability to deliver dependable financial returns over time.
Giles Cunningham, Chief Executive Officer of AlRayan Bank UK, said investors are becoming more selective when evaluating British real estate, particularly as they compare opportunities in the UK with those available in other global property markets.
The findings indicate that rental income potential, market fundamentals and long-term investment prospects are becoming increasingly important considerations.
About the GCC Investment Barometer 2026
The fourth annual GCC Investment Barometer surveyed 150 high-net-worth individuals from the UAE, Saudi Arabia and Qatar.
Each participant held wealth or assets valued at £10 million or more, providing insights into the investment priorities of affluent Gulf investors.
The research was conducted between June 4 and 12, 2026, and examined respondents’ confidence in the UK property market, preferred investment sectors and future plans.
The bank clarified that the findings represent investors’ stated preferences and intended investment activity, rather than property transactions that have already been completed.
