As of the most recent statistics provided by global property consultant Knight Frank, Middle Eastern investors are commencing to return to the UK property market.

As per the firm's statistics, Middle Eastern customers accounted for 16% of all sales to international purchasers during the first three months of 2021, up from less than 10% in the second and third quarters of the previous year. This would be the highest level of interest in the Middle East ever since the breakout of COVID-19 in the UK.

Despite early indications of rebound, the business believes Middle Eastern investment remains much below pre-COVID levels, but it expects activity to increase as foreign travel constraints loosen.

According to the statistics, purchasers from the GCC are presently placed third in the UK, trailing behind purchasers from Asia (18%) and Europe (18%) (59%).

“Despite worldwide travel limitations, worldwide demand for London property has indeed been increasing over the previous 12 months,” said Tom Bill, head of UK residential research at Knight Frank.

“It has caused some prospective purchasers to become dissatisfied, especially in light of the UK's successful immunization program.” We expect regular service to resume once travel restrictions are eased, notably London's long-standing connection with Middle Eastern buyers.”

Despite lower-than-average GCC investment, Knight Frank's Global Wealth Ambassador to the Middle East, who works directly with both the region's high net worth individuals and family offices, has executed about £90 million in sales since the UK entered into lockdown.

“There is an especially high demand from GCC investors for best-in-class new develop applications in and around Mayfair,” said Moreas Madani, Middle East global wealth ambassador at Knight Frank.

“We are receiving consistent interest from the Middle East; however, the largest difficulty is international travel limitations. As this subsides and after Ramadan, we anticipate seeing increased activity from the area as pent-up demand is released.”

Lodha, the developer overseeing No. 1 Grosvenor Square, the old US Embassy, and the Canadian High Commission, would see an increase in demand from Middle Eastern purchasers firsthand.

“We have witnessed a steady growth in inquiries from potential clients from the Middle East ever since the beginning of the new year, and we expect this to continue during the summer when London re-opens and international travel starts again,” said Gabriel York, Co-CEO of Lodha UK.

“We are already meeting a large number of GCC families and business people who could have formerly lodged in a hotel suite when visiting London but now want to establish a permanent house in the city. They are drawn to No. 1 Grosvenor Square by the prominence and grandeur of the building, the central Mayfair area, the level of the amenities, and a yearning for excellent services that are tailored to their specific needs. The vault, a one-of-a-kind automated parking system, has also become a massive attraction for buyers from the Middle East who do have specific automobile collections and want ultimate protection for their automobiles.

“Health and wellness are becoming increasingly key aspects in property selections, and buyers are looking for homes near garden squares and parks with great health facilities and easy access to health care services. No. 1 Grosvenor Square is situated on London's second-biggest garden square and is a short walk from Hyde Park, the city's largest park.

“The building has its health and wellness centre, which includes a 25-meter swimming pool, a gym, a Pilates studio, treatment, and consultation rooms, and is staffed by health advisers from a variety of health and medical disciplines.”