The landscape of UK property investment is transforming. GCC investors are no longer seeking certain postcodes, such as a ‘trophy home’ in Mayfair London. Instead they are looking for strong rental yields in emerging locations.
In a new report released by Nomo Bank, a leading Sharia-compliant international bank, they revealed that Gulf-based investors’ priorities have changed with regards to UK property investment. GCC investors today are data-driven and strategically minded, following detailed evidence-based reports before parting with capital.
Read on to discover the key takeaways from Nomo Bank’s latest report, exploring why GCC-based investors are increasingly pivoting towards the UK property market.
Why is the UK property market strong now?
UK property currently presents an attractive market, with interest rates decreasing, and more accessible lending opportunities available for GCC investors.
- The base rate has recently dropped to its lowest level since 2023, meaning mortgage products are more desirable and affordable for many. As quoted in Nomo Bank’s recent report, Richard Rinder, co-founder of Novo Capital, observed: “Every time there’s talk of rate cuts, we get more enquiries. Buyers are watching the market very closely.”
- For GCC investors, Nomo Bank has offered reduced rates across its entire product range, making UK property investment more accessible. These rate reductions are in response to client demand, with a significant increase of gulf-based investors seeking UK property investment opportunities
GCC investors begin to look beyond London
Previously, the UK’s capital, London, was the city of choice for both domestic and international investors. Now, GCC investors are casting their capital further afield.
- The North West has emerged as a leading location for GCC investors – capturing 18% of total GCC demand.
- Manchester and Liverpool are particularly popular among investors, thanks to their attractive entry prices and rental yields of 5-7%.
- Birmingham is also gaining traction as an emerging hotspot due to its vast student population and regeneration projects, in addition to Leeds and Sheffield.
- Data from industry giant Rightmove supports this shift, as in 2025, high-value areas in London, such as Westminster, Kensington and Chelsea no longer appeared in the top 20 areas for GCC property demand in 2025.
A shift in strategy for property investors
According to the latest market-insights report, GCC investors holding capital are altering their investment strategies, opting to target properties in the sub-£2 million region.
- Affluent buyers are now targeting properties in a lesser-value range, such as apartments costing upwards of £250,000, opposed to houses costing millions.
- With lower entry prices, these investments are more attractive for a range of investors as the capital required is significantly less.
- Long-term stability and strong rental yields are now a higher priority for investors.
- Apartments present less upkeep than larger houses, and are very popular amongst the rental market.
- In Manchester and Birmingham, rental prices for new-build apartments have increased over 50% over the past five years alone, as demand from tenants for this property type soars.
The trusted partner for GCC investors investing in UK property
The UK property market continues to remain one of the most stable environments for global capital, whilst offering strong returns. For GCC investors, the current window offers a unique opportunity to secure high-yielding assets with an attractive interest rate.
At Select Property, we’ve been the trusted investment partner for over 20 years for Gulf investors, with global offices in Manchester, Dubai, Shanghai, Hong Kong and Riyadh. You can contact our team to find out more about investing in the UK.