Gulf investments in the UK’s high-end property market are on the rise, despite the global financial meltdown, according to Wealth Magazine, a new publication launched this month by CPI Financial, one of the leading financial publishers in the region.
Nigel Rodrigues, CEO of CPI Financial, says: “London is still presenting an attractive real estate market for the UAE and international investors. The turmoil in the financial markets over the last couple of years has obviously had an impact, but sourcing quality properties in prime areas in the city remains difficult.”
Wealth Magazine, the bi-monthly English publication which just appeared on newsstands, is launched to address Gulf residents’ investment needs and is designed specifically for the High Net Worth Individuals (HNWIs) living in the United Arab Emirates.
Robin Amlôt, Managing Editor of Wealth, explains: “Now is the time for HNWIs to be focusing on what happens over the next five, ten or twenty years, rather than worrying about their short term losses and gains. And in our first issue of the magazine, we highlight how UAE investors are showing great optimism for present and future investments.”
Wealth says that “there is still an international wall of money chasing London’s best houses, not least from the Middle East, and the United Arab Emirates in particular. It has been estimated that around 70 per cent of the property in Mayfair’s mainly residential Berkeley Square is owned by purchasers from Abu Dhabi.”
“There is enough reason for Arab and expatriate investors in the country to keep Central London on their radar screen for their long-term investments,” says Nigel Rodrigues.
Prices of prime houses in Central London are actually on the rise. The combination of high demand and low supply for London’s quality areas is causing the cost of property to remain one of the most expensive in the world. In some areas such as Chelsea, Kensington and Notting Hill, prices have increased by nine per cent within the last six months.
“Despite this, prices remain highly competitive and in demand by international and Gulf investors,” Rodrigues adds. This competitiveness is mainly due to the very limited supply, investors’ confidence in the City of London and the favourable exchange rates.
UAE investors’ confidence is not merely geared towards prime property in London. An inflow of investments towards the local capital markets is expected in the next six months as investors are expecting stocks on the Abu Dhabi Stock Exchange (ADX), the Dubai Financial Market (DFM), and for NASDAQ Dubai to rise, says the magazine in its first issue.
Robin Amlôt explains: “Taking a longer-term outlook during difficult economic times and stock market uncertainty offers investors an opportunity to improve their portfolios’ diversification and quality.”
The magazine gives the local stock markets as an example. “Anyone with the courage and the sense to invest the United Arab Emirates’ (UAE) local stock markets at the beginning of 2009 will have been rewarded with handsome returns of 33.9 per cent over the course of the first nine months of the year.”
Sentiment remains positive with investors expecting stocks to rise by 33.3 per cent at the ADX, 25.5 per cent at the DFM and 21.6 per cent at NASDAQ Dubai.
CPI Financial, established in Dubai in 1999, was born to meet the needs of an ever expanding, increasingly sophisticated financial community, offering a comprehensive portfolio of market-leading products and services tailor-made for the banking & financial sector. Wealth Magazine is highly focused on how individuals can attain, sustain, increase, and enjoy riches.
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