A notable increase of anxious buyers and renters from the Gulf is flooding the inboxes of prime London estate agents as conflict in the region rattles confidence and prompts wealthy residents to reconsider their plans.
Several prominent agencies in the capital say enquiries from the Gulf have jumped sharply in recent weeks, with interest driven by escalating instability across parts of the region and reports of attacks affecting major hubs such as Dubai.
Agents say the spike is coming from a mix of returning European nationals looking to move back to cities such as London and Paris, as well as international buyers who had previously been considering relocating to the United Arab Emirates or Saudi Arabia but are now putting those plans on hold as tensions escalate across the Gulf.
Rosy Khalastchy, director at Beauchamp Estates, said: “Buyers from the Gulf region are currently the largest group of buyers for luxury homes in Central London, especially for homes priced above £15m. Gulf buyers currently account for 25% of all £15m-plus home sales across London, up from 20% in 2024. They are the largest buyer group, followed by American purchasers.
There are three distinct types of buyers from the Gulf who both own and also rent homes in London. The first group are domestic Gulf nationals, in particular from the United Arab Emirates and Saudi Arabia.
The next group are Indian, Pakistani, Yemeni, Lebanese and UK expats, who are now based in the Gulf, but either own or rent second homes in London. The third group are wealthy Israelis, who own or rent homes in the UK capital.”
Since the current Gulf crisis began two weeks ago, Beauchamp Estates has seen a 15% rise in enquiries, both for homes for purchase and to let, from Gulf nationals, and also Indian, Pakistani, Lebanese and other nationals who are based in the Middle East. A lot of families based in the Gulf who have young children are particularly anxious on ensuring their families are safe at present.
There has also been a 10% rise in enquiries over the last two weeks from Gulf based UK nationals who in the last five years have relocated to live in the Gulf, especially Dubai and Abu Dhabi.
Khalastchy added: “We have had a flow of enquiries from some of these UK nationals looking to either rent [for either short-term or for up to six months] or buy a pied-a-terre property back in London.
“There have also been a few enquiries also Israelis looking to rent property in London.”
“Some of our clients who had been delaying purchases in London are now going through with them, whilst others who had been considering relocating or buying homes in the Gulf, especially in Dubai and Abu Dhabi have decided to pause. People want to see how things play out in the Gulf over the next few weeks. So in the short-term the impact of the Gulf crisis is leading to enquiries from various groups currently based in the Gulf, seeking the safety and stability of London whilst the ongoing crisis continues.”
Khalastchy highlights that more than 4,000 people have returned from the Gulf to the UK so far and 140,000 UK nationals based in the Middle East have registered their presence with the UK Foreign Office, including 112,000 based in the UAE, and requested ongoing updates and advice about their safety and status. It is estimated that some 240,000 British nationals live in the United Arab Emirates, most in Dubai and Abu Dhabi.
“Even if less than 5% of those currently based out in the Gulf decide to relocated back to the UK to live, either temporarily or for a prolonged period, that still represents some 12,000 people,” he added. “Some of the 12,000 may still own homes in the UK, but they may be rented out, so some people will need to seek either short-term or medium-term rentals, and others may wish to buy a pied-a-terre in the UK as a bolthole if this crisis continues or there is a threat of it happening again in the future.”
Mark Pollack, co-founding director of Aston Chase, has also found that the current Gulf crisis has given the London property market a boost.
He commented: “I sense that it is helping us to get existing deals over the line, and has boosted the morale of vendors who have endured a torrid time in recent years, with the implications of a Labour government and ensuing flight of wealth due to non-dom and inheritance tax legislation and the 19% Stamp Duty Land Tax for international purchasers.”
“We are also conscious that a market crash or significant correction is widely anticipated in Dubai, which comes as no surprise. Dubai feels like a disproportionately inflated market, and the current conflict will inevitably result in some people reconsidering where might be the safest place to bring up a family over and above the obvious financial attractions of Dubai.
“Consequently, I think the Gulf crisis will indirectly have a positive impact for the London property market which would, ironically, represent a timely and long overdue boost. It will inevitably remind both end-users and investors alike that London remains one of the safest and most stable places in the world to ‘park money’ or live, alongside of course the many other much heralded benefits such as culture, lifestyle and education.”
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