UAE real estate developers are turning to London’s housing market as prices have declined in recent years, viewing the situation as an opportunity to enter the market ahead of any potential recovery.
According to an AGBI report, residential property prices in central London have fallen by 7% since 2023 due to the slowdown in the British economy and higher interest rates. In contrast, the UAE has experienced a post-pandemic real estate boom, providing developers with liquidity to expand internationally.
This disparity has made the UK market increasingly attractive as a relatively low-cost investment destination. Khaled El Enany of BLME Bank in London noted that the challenges of 2025 weighed on the British market, but he believes the price drop represents an opportunity to acquire assets at discounted values.
Bank estimates suggest Gulf investments in UK real estate will rise by up to 20% this year, potentially reaching £3.4 billion by the end of 2026. Data from Knight Frank also indicates that prime London property prices remain 22% below their 2015 peak.
In terms of transactions, Aldar Properties acquired London Square for $291 million in 2023, while Arada purchased Regal and announced plans to develop 30,000 residential units in the future.
Gulf developers are leveraging their experience in building integrated communities and are targeting industrial land and infrastructure assets in London for redevelopment.
