LONDON — Investment in UK commercial property by Gulf investors is expected to grow to more than 3.1 billion pounds ($4 billion) in the coming 12 months, according to a study released Monday from Bank of London and The Middle East (BLME).
Britain, which elected a Labour government in July after 13 years of Conservative rule, is expected to cut interest rates later this year against the backdrop of falling inflation and lower property prices in some parts of the market.
The study — conducted by one of Europe’s largest Sharia-compliant banks — said that these economic conditions will create an opportunity for investors from the Gulf Cooperation Council (GCC) to deploy capital.
In the study, some 87% of interviewees BLME spoke to said falling interest rates would be a key driver of GCC investor appetite over the next 12 months.