The UK’s Midlands is emerging as one of the most favourite destinations for Qatari investors in the real estate. The real estate properties, including residential and commercial, that are located in the region of Midlands is said to be now offering much higher returns on investment than in other parts of the UK , said a senior official of Daniel Johns Group (dj), a global property investment company.
“Early this morning we already signed a deal with a big investor who is buying 30 units in the HiLux luxury apartments (located in Birmingham) with an investment of about £12m. We have scheduled meetings with some potential investors from the US, China and India on the last of day of the Cityscape Qatar 2019,” Nadim Mansour, Managing Director at Daniel Johns, Qatar told The Peninsula at Cityscape Qatar expo.
Mansour, who is heading dj’s Doha office, added: “I believe that the UK is the number one market, and the fourth biggest economy in the world. It has a lot to offer to the investors who are looking to diversify their portfolio both in terms of geography and sector.”
He said that Daniel Johns’s clientele in Qatar has grown very fast over the last 5-6 years. In 2014 the company was handling some projects strictly non-rental yield in London. The volume was much less than today. Since then the company has achieved more than 300 percent growth in Qatar.
However, the appetite has changed to Midlands than any other region within the UK. The main reason, according to Mansour, is higher returns on investments. The mode has changed as investment in London’s property market offers maximum yield of only 3 percent.
“Within Midlands we are focusing more on Manchester, Birmingham; and Liverpool. This part of the UK has special advantage because of the new trains that are going to start soon connecting these cities with London,” said Mansour.
He also said that in addition to rapid connectivity with the start of fast moving trains, there are many other attractions such as the Media City in Manchester, which will be home to some of the big international media organizations. Even the big channels like BBC and CNN are going to migrate to the Media City from London which will further boost the demand for residential and commercial properties.
Qatari and other investors from the region in London, who are seeking better opportunities of higher yields on their investments, are moving to Midlands.
The uncertainty and volatility in the real estate markets in the region, over the last 2-3 years, have pushed many investors towards Europe which has impacted positively to the sales of real estate service providers in Qatar and the other GCC region. Investors from the region are looking for markets that have more asset security as well as better returns.
“Our projects, especially in Manchester, Liverpool and Birmingham, have asset security and better yields (on average more than 8 percent) with guarantees of rental yields of up to five years; that itself give some sense of security and confidence for investment diversification to the GCC and Qatari investors in particular, in Midlands, as London suffered an impact of about 3 percent depreciation in 2017 and 2018.
He said that investments in Manchester, Liverpool and Birmingham, will continue to yield better returns both in terms of rentals and value appreciation in the coming years as these are demand-driven markets which are going to have faster connectivity with London. Booming retail business, several big universities, and growing demand for residential units will be the major driving force in future.
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