GCC investors have continued their steady stream of European real estate acquisitions despite the market destabilisation caused by Brexit and recent terrorist attacks on European soil. Investors from the small, oil-rich nation are focused mainly on hospitality assets in key markets. They have been dubbed “the hottest source of investment funds for the acquisitions of European hotels.”
Major investments made by GCC individuals and institutions in the UK have made headlines in recent years. These include the Shard, encompassing the 202 room Shangri-La hotel, and the Battersea Power Station – a mixed-use redevelopment project set to include a luxury hotel.
In 2015, European hotel acquisitions hit a record, with investors globally buying 26 billion USD worth of hotels – a massive 66 percent increase from 2014, according to HVS. Buyers from the GCC were responsible for one fifth of these purchases.
Investors from GCC nations – Qatar, Saudi Arabia, Kuwait, Oman, Bahrain and the United Arab Emirates – will likely be pursuing European property post-Brexit, taking advantage of the significant drop in prices. According to the Head of Research at consultancy Faisal Durrani, “Any US dollar or UAE dirham investors will find the price of an average prime Central London residential asset 96,000 USD less than it was on June 20th.“
The lower prices are expected to draw significant capital from GCC investors, whose troubled regional economy has spurred overseas investments into real estate as a way to diversify their portfolios and protect their assets from further fluctuations in oil prices.
Naseba has established a network of investors based around the world – including the GCC. We specialise in sourcing high-potential investment opportunities on behalf of these investors. Recently, our investor analysts have been focusing on European real estate in response to a growing trend among our GCC investors.
On October 17th, 2016, we will be organising a private investor meeting in Riyadh to introduce pre-screened GCC investors to pre-qualified European real estate investment opportunities.
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Naseba investor introduction
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