Gulf investors are re-entering the UK property market, driven by falling interest rates and political stability following the Labour Party's general election win. This renewed interest, especially in outer London suburbs, reflects a shift in strategy towards properties offering higher yields and long-term growth potential.

Key highlights:

• Market Shift: Investors are focusing on under-invested office and retail properties for residential conversion, leveraging opportunities in zones 3-5 of London for yields of 4-6%, compared to 2% in central London.
• Increased Capital Flow: Gulf investors are expected to surpass $4 billion annually in UK commercial real estate investments, seeing the UK as a safe investment hub amid European uncertainties.
• Strategic Adjustments: Buyers are targeting properties priced between £750,000 and £850,000, moving away from the £1-2 million range previously popular in central London.
  
  

Developments like Barratt's Eastman Village in Harrow and Hayes Village highlight the appeal of suburban regeneration projects, offering yields exceeding 6%.