AlRayan Bank UK Report: Gulf Investors Shift to UK Income-Generating Property

Wealthy Gulf investors are significantly re-evaluating their approach to the UK property market, moving away from luxury residential properties towards assets that offer stronger income generation and long-term value. This trend is highlighted in the latest GCC Investment Barometer 2026 by AlRayan Bank UK, which surveyed 150 high-net-worth investors from the UAE, Saudi Arabia, and Qatar.

Changing Investment Priorities

The report indicates that property development has become the top priority for future UK real estate investment, attracting 30% of respondents. Retail property follows closely at 29%, reflecting a broader shift towards operational performance and sustainable income. Other key areas of interest include:

• Social or affordable housing: 28%
• Hospitality and leisure: 28%
• Personal residential property: 28%
• Build-to-rent developments: 24%
• Student accommodation: 23%
• Industrial and logistics properties: 23%

This diversified approach suggests investors are prioritising assets that provide a steady income stream over those primarily valued for prestige or location.

UAE Investor Confidence and Focus

UAE investors demonstrate strong confidence in the UK property market, with 96% of respondents reporting increased confidence over the past year — the highest among the surveyed Gulf markets. Beyond that, 92% of UAE investors anticipate UK property will remain a robust investment opportunity over the next five years.

For UAE investors considering London, professional services are a major draw for 56%, while 48% cite long-term value appreciation and the option for relocation. Saudi investors show a particular inclination towards property development, with 37% identifying it as a future priority, and plan to invest an average of £98.5 million in UK property over the next five years.

Beyond London's Luxury

While London remains a significant destination for Gulf capital, investors are increasingly exploring opportunities in other UK cities. Liverpool garnered interest from 34% of respondents looking at regional investments, followed by Birmingham (27%) and Manchester (25%). Factors such as affordability, rental income, transport connectivity, and local economic conditions are becoming increasingly crucial in these investment decisions.

Despite evolving preferences, the appetite for British property remains high, with 99% of respondents intending to make new or increased UK property investments in the coming five years.