LONDON // When it comes to dinner party conversations, there are always two topics that never fail to arouse Londoners. The weather and the price of property.
In the middle of one of the coldest Februaries in memory, the snow and ice have vied with the collapse of the housing market to induce a national sense of winter gloom.
Thousands of miles away from the capital's icy streets, however, the first green shoots of recovery may be emerging in the Gulf sunshine.
A report on London's prime property market from the estate agent Knight Frank shows that the overseas demand has risen 35 per cent year on year. Leading the way are Middle East buyers who make up 52 per cent of that rise.
The lure is a collapsing pound on the international currency market - down to around Dh5.3 from more than Dh7 last year - and a 22 per cent fall in property prices since they hit their peak. Robert Barlett, the chief executive of the British estate agent Chesterton Humberts, arrived in Abu Dhabi earlier this month on a visit to his newly opened offices near Salam Street - at present the only British agent in the Emirates.
"We looked around the area for two years before we settled on Abu Dhabi," he said. "Much of the UAE has had a difficult time since the credit crunch, but Abu Dhabi is still incredibly wealthy and we saw a demand here for properties in London."
Most Middle East buyers are heading - as they always have - for Knightsbridge's Pashmina Triangle of Harvey Nichols department store, Harrods and the Jumeirah Lowndes Hotel. Some venture into Mayfair and Belgravia while others check out properties in the £1 million to £2.5 million (Dh5.3 million to 13.3 million) price range in Chelsea, Kensington, Notting Hill and Holland Park - the areas hardest hit by City redundancies - where viewings are up by more than 80 per cent.
It is a small but exclusive corner of the British market - almost a colony - where solid 19th century terraced houses used to sell for more than £20m without raising an eyebrow.
Indeed, in the much hyped One Hyde Park, opposite Harvey Nichols, a luxury block being developed by a consortium led by Qatari Diar Real Estate, four penthouses were priced last year at £84m each. The cheapest unit is now listed at £4m. One quarter of the buyers were said to be from the Middle East.
All this helps to explain why Mr Bartlett is looking eastward. "This is the time to buy,'' he said. "Some of the polls say the market has dropped by 16 per cent to 18 per cent, but looking at actual transactions it is much more like 25, even 35 per cent, down. Then add the value of the dollar against the pound and London is seeing a massive drop in prices." Many of his clients buy an apartment or a house to use for a month or two in the summer. Others buy for long-term investments to exploit what is a strong rental market.
"Our Arab clients are very investment driven," he said. "They make decisions quickly, not just because they have the money but because they trust dealing with a British company.
"It is quality they are after. It might be as small as a £400,000 apartment or a £4m house but it has to be smart and well decorated with a high spec. The Arabs are a very proud people and appearance is important to them. They won't tolerate bad workmanship."
Chesterton has had interest in an airy three-bedroom penthouse with a studio-style living area for £5.75m and a one-bedroom studio next to Harrods at £1.75m. A five-bedroom terrace overlooking Lowndes Square is on the market for £11.5m.
But as Louise Hewlett, of Aylesford estate agents in Chelsea, emphasises: "Prices depend on what people are prepared to pay. It is no use looking at what was sold last year; it's what's happening today that counts."
There is no doubt that a cash-in-hand buyer holds all the trumps. Charles McDowell, an independent property consultant, is careful to moderate the publicity that has followed the takeover of Manchester City by Sheikh Mansour bin Zayed, the Minister of Presidental Affairs, which has led the fan in the street to think all Emiratis have unlimited cash.
"The Middle East has some of the same economic problems that we have in the UK," he says. "They are careful to buy at the right price and I have noticed that they are going for slightly smaller units. I was looking at a place which was £7.5m 18 months ago; now it could go for £4.5m to £5m.
"I have shown clients a two-bedroom apartment in Cadogan Place in need of some work for £1.2m and another in Pont Street, behind Harrods, where a 2,100-square-foot apartment is going for £5.5m.
"I have found that Arabs buy but don't sell. They don't flip properties the way people buy and sell off-plan in, say, Dubai in the hope of a quick profit. They keep them and build up a portfolio in a very solid, old fashioned way. They buy quality."
In fact, Mr McDowell knows of one investor from the Middle East who owns 150 properties in central London which are rented out.
Ed Mead, of Douglas & Gordon, has found that 70 per cent of his transactions are with foreign buyers.
"Arabs like to buy top-end properties," he says.
"But they don't go in for trophy homes. They don't want to show off like the Russians, Indians or Chinese, who are the first generation rich. The Arab buyers are now third generation. They went through that in the seventies and learnt from their parents. They have no need to flash their cash."
Tom Dogger of the agency Winkworth reckons there is another contribution to the renewed interest in Britain.
"The UK seems a more secure market, especially as these are not the sort of buyers worried about mortgages. These are cash buyers."
* The National
German intelligence warnings
- 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
- 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
- 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250
Source: Federal Office for the Protection of the Constitution
The%20Super%20Mario%20Bros%20Movie
%3Cp%3E%3Cstrong%3EDirectors%3A%3C%2Fstrong%3E%20Aaron%20Horvath%20and%20Michael%20Jelenic%0D%3Cbr%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Chris%20Pratt%2C%20Anya%20Taylor-Joy%2C%20Charlie%20Day%2C%20Jack%20Black%2C%20Seth%20Rogen%20and%20Keegan-Michael%20Key%0D%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%201%2F5%3C%2Fp%3E%0A
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
How to help
Send “thenational” to the following numbers or call the hotline on: 0502955999
2289 – Dh10
2252 – Dh 50
6025 – Dh20
6027 – Dh 100
6026 – Dh 200
Results
2.30pm: Handicap (PA) Dh40,000 1,700m; Winner: AF Mezmar, Adam McLean (jockey), Ernst Oertel (trainer).
3pm: Maiden (PA) Dh40,000 2,000m; Winner: AF Ajwad, Tadhg O’Shea, Ernst Oertel.
3.30pm: Handicap (PA) Dh40,000 1,200m; Winner: Gold Silver, Sam Hitchcott, Ibrahim Aseel.
4pm: Maiden (PA) Dh40,000 1,000m; Winner: Atrash, Richard Mullen, Ana Mendez.
4.30pm: Gulf Cup Prestige (PA) Dh150,000 1,700m; Winner: AF Momtaz, Saif Al Balushi, Musabah Al Muhairi.
5pm: Handicap (TB) Dh40,000 1,200m; Winner: Al Mushtashar, Richard Mullen, Satish Seemar.
Game Changer
Director: Shankar
Stars: Ram Charan, Kiara Advani, Anjali, S J Suryah, Jayaram
Rating: 2/5
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Rebel%20Moon%20-%20Part%20One%3A%20A%20Child%20of%20Fire
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3EZack%20Snyder%3Cbr%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3ESofia%20Boutella%2C%20Djimon%20Hounsou%2C%20Ed%20Skrein%2C%20Michiel%20Huisman%2C%20Charlie%20Hunnam%3Cbr%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E2%2F5%3C%2Fp%3E%0A
match info
Manchester United 3 (Martial 7', 44', 74')
Sheffield United 0
'Peninsula'
Stars: Gang Dong-won, Lee Jung-hyun, Lee Ra
Director: Yeon Sang-ho
Rating: 2/5
Al Jazira's foreign quartet for 2017/18
Romarinho, Brazil
Lassana Diarra, France
Sardor Rashidov, Uzbekistan
Mbark Boussoufa, Morocco
Other workplace saving schemes
- The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
- Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
- National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
- In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
- Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
More from Neighbourhood Watch:
Titanium Escrow profile
Started: December 2016
Founder: Ibrahim Kamalmaz
Based: UAE
Sector: Finance / legal
Size: 3 employees, pre-revenue
Stage: Early stage
Investors: Founder's friends and Family
The%20specs
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E2.3-litre%204cyl%20turbo%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E299hp%20at%205%2C500rpm%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E420Nm%20at%202%2C750rpm%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E10-speed%20auto%0D%3Cbr%3E%3Cstrong%3EFuel%20consumption%3A%20%3C%2Fstrong%3E12.4L%2F100km%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3ENow%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh157%2C395%20(XLS)%3B%20Dh199%2C395%20(Limited)%3C%2Fp%3E%0A
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Revibe%20%0D%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202022%0D%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Hamza%20Iraqui%20and%20Abdessamad%20Ben%20Zakour%20%0D%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20UAE%20%0D%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20Refurbished%20electronics%20%0D%3Cbr%3E%3Cstrong%3EFunds%20raised%20so%20far%3A%3C%2Fstrong%3E%20%2410m%20%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EFlat6Labs%2C%20Resonance%20and%20various%20others%0D%3C%2Fp%3E%0A
COMPANY PROFILE
Initial investment: Undisclosed
Investment stage: Series A
Investors: Core42
Current number of staff: 47
