Late last year, we opened our fourth office globally, in Dubai’s DIFC, following a 31% increase in GCC-based clients looking for financing solutions in the UK and Europe.
This reveals something interesting about the behaviour of Middle Eastern investors. Despite there being much doom and gloom reported in the London property market, high net worth (HNW) investors are still savvy in seeking opportunities in the UK, and our clients are certainly finding new ways to do it.
How are Middle Eastern investors making the most of a bad market?
For example, with stagnant property prices, and weakened sterling, there is the chance for flexibility in terms of asking prices. We’re currently working with a client who is making a £500,000 saving on a property they planned to buy last year. Having waited, the property is now being sold for £2.3million, rather than the £2.8million price tag it originally held.
The client had a requirement whereby they didn’t want to place any liquidity with the bank to secure the loan, something which is often required for high value loans. However, the bank was flexible and we secured the client a dry lend – that is, no assets under management. A further example of opportunity in the London property market; the current appetite from banks to lend is strong.
Middle Eastern investors are increasingly refinancing their assets
There are also excellent opportunities when it comes to refinancing. Our HNW clients in the UAE hold high value assets in the UK, many of which are not performing as well as they once did in terms of yields or capital growth.
With interest rates still comparably lower than years gone by it makes sense to refinance onto a lower rate, and free up liquidity for other investments – for example, we’re working with clients who are raising cash to invest in higher yielding markets such as, property in other UK cities or Europe, commercial developments, and other more lucrative investment opportunities.
Enness is the only independent mortgage brokerage in the UAE, with access to over 250 banks worldwide. Whatever the market conditions, Enness has the contacts and knowledge to find a solution to your circumstances.