Luxury real estate company founder Trevor Abrahmsohn is very busy at the moment. The founder of Glentree International, which has been operating for 45 years, says he is inundated with rental queries from international clients, particularly in the Middle East, looking for prime London properties to move into. And the coronavirus pandemic is not denting the level of interest.
“Rentals are doing very well. I’ve got very little stock for higher rentals. I’m raiding the sales larder for some of my prospective tenants, trying to persuade people who want to sell to rent out their properties instead,” says Mr Abrahmsohn.
...we are dealing with more inquiries and actual live property transactions than we've had for the last three years.
Glentree is responsible for 90 per cent of trophy home sales on properties worth more than £10 million ($12.89m) along London’s north-western corridor, which includes leafy areas such as Hampstead, Highgate and St. John’s Wood, according to the luxury real estate specialist. And sales demand has also heightened in recent months, mainly among clients already in the capital following the Covid-19 lockdown.
“I have a Middle Eastern princess, looking for a home for a very significant amount of money,” he says. “She has a number of family members already living in Hampstead so the price is secondary to the property."
This flurry in activity is mirrored by other market leaders in prime real estate, such as Barclays Private Bank, which has a base in Dubai International Financial Centre as well as in Asia, Africa and Russia. It claims to be one of the biggest mortgage lenders in London's prime real estate space and has noticed a surge in activity over the past few months.
“We’ve seen a lot of action over the summer,” says James Penny, head of UK international private banking for Barclays. “If you’d asked me in March how busy we would be with the mortgage business over the summer, I would have probably said not very, but we are dealing with more inquiries and actual live property transactions than we've had for the last three years.”
While a global pandemic and uncertain travel restrictions might be considered a deterrent for the wealthy to invest in a luxury real estate, prime property prices in the capital and beyond have been on the rise over the past couple of months.
Buyers from the Middle East are 2020's third largest spenders in prime residential property in London, having accounted for a quarter of all buyers over £10m in London in 2019, according to global real estate consultancy Knight Frank.
Prices for high-end homes with a garden on the outskirts of the capital or outside London altogether hit highs in the third quarter not seen since before the global financial crisis of 2007, according to Savills, driven by record levels of demand from buyers looking to change their housing needs after the lockdown.
Values of prime regional property – broadly the top 5-10 per cent of the market by value –are now 1.4 per cent above their 2007 peak, with the biggest increases seen in the traditional £2 million-plus traditional country house market and in coastal properties.
“A desire for more space is now a major priority for buyers. It has boosted the appeal of more rural and lifestyle locations ... It has also created demand for larger family homes in London, particularly for those expecting to work from home for at least part of the week on an ongoing basis,” says Frances Clacy, a Savills research analyst.
Ilchester Place in London's Kensington (£35/$45 million) was featured in The National's luxury property series, and affords any prospective buyers plenty of space.
Increase in international demand
While much of the demand is domestic, Savills says the number of international visitors to properties on its website has risen steeply in recent months, “with interest from Germany, the Middle East and Canada at record levels". “There certainly appears to be pent-up demand for UK property from international buyers who wish to view in person when travel restrictions ease,” says Andrew Perratt, head of UK residential.
Barclays has noted more summer action at the more expensive end of prime property, where values tend to top £5m, says Mr Penny. Transactions on second pads in the countryside are also on the rise, he says, perhaps in case the UK heads into a second lockdown.
“In some cases, the property remained unsold so the client has come back and made an offer below the asking price of 5 to 10 per cent, which has been successful,” he says. “Covid has not been a deterrent for long-term buyers looking in London. For prime central London, prices are well-defined, they are not making any more land, so it’s a long-term store of value.”
The Middle East is one of the world's hotspots for wealth with more than 14,000 ultra-high-net-worth-individuals in the region and 195 billionaires, far exceeding the UK’s billionaire tally of 71, according to Knight Frank's Global Wealth Report 2020.
With interest rates at record lows and sterling weakening since 2016 when Britain voted to exit the European Union, international clients looking to park their money in these uncertain times are attracted by the relatively good deal a London property purchase presents.
“With the weakness in sterling, a client who has considered buying in London as part of a longer-term plan is able to purchase an amazingly good quality asset at a price that’s significantly cheaper than it was a few years ago,” says Mr Penny.
“Sterling has found its floor and we don’t see significant weakness moving forward and that’s a view shared by quite a few clients who have been waiting to see where Brexit goes to try and time their purchase.”
Another financial driver for international buyers is the UK’s intention to add a 2 per cent surcharge on Stamp Duty Land Tax for overseas buyers next year. International buyers are currently subject to the same rates on UK residential property purchases as UK residents, which equates to up to 12 per cent of the value of a property worth more than £1.5m for prime property buyers.
“The stated purpose of the increase in 2021 is to deter foreign buyers from driving up UK property prices and to provide revenue to combat rough sleeping,” says Dominic Filleul, partner at law firm Cripps Pemberton Greenish. “The surcharge will inevitably have an effect but there are bigger factors now at play – how the UK looks to investors post Brexit and how long it takes to come through the Covid-19 pandemic.”
More space - the final frontier
However, real estate agent Mr Abrahmsohn says his clients are fazed neither by Brexit nor Covid. Instead, they are more interested in hunting for properties with sizeable private gardens that can accommodate large families in the event of the UK returning to full lockdown.
“International families that were stuck here during the crisis are now looking for a house with a garden. Some of these mansions are like small-to-medium sized luxury hotels. They’ve got hairdressing salons, massage rooms, wellness clinics and if clients can’t travel they want privacy and recreation within the property,” he says.
Mr Penny agrees that London’s many green spaces heightened its allure during the pandemic, because owners could stretch their legs in the city's extensive parkland.
While experts concede that travel restrictions are affecting some prime property transactions getting across the line, London’s enduring appeal is also driving the rise in interest.
“It’s where everyone wants to be,” says Mr Abrahmsohn. “London has morphed into the greatest city on earth, it’s rich in heritage and history, it's clean, it's civil, it's liberal, it's tolerant. There's a safe economic and political environment. And it's fiscally efficient.
“If you buy a property in Hampstead, for example, you get up to 11 acres of land and you are 15 minutes from the West End. Nestled between two mediaeval villages of Hampstead and Highgate, you have 900 acres of parkland on your doorstep, two golf courses within walking distance, an American school and a private or public airport half an hour away.”
The UK’s more temperate climate also suits those escaping hot Middle East temperatures in the height of summer and while many Middle Eastern buyers often have an educational or business tie to London, they also consider it “a fun city” that not only appeals to them but also their extended families.
“It's an aspiration for many wealthy families to own a property in London," says Mr Penny. “It’s a lifestyle asset and prime central London is a very well-defined area; they’re not making any more land and it has traditionally held up very well as a long-term store of value. I don’t think we’re going to see any slowdown at the moment."
SECRET%20INVASION
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The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
UAE currency: the story behind the money in your pockets
Some of Darwish's last words
"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008
His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.
Results
4.30pm Jebel Jais – Maiden (PA) Dh60,000 (Turf) 1,000m; Winner: MM Al Balqaa, Bernardo Pinheiro (jockey), Qaiss Aboud (trainer)
5pm: Jabel Faya – Maiden (PA) Dh60,000 (T) 1,000m; Winner: AF Rasam, Tadhg O’Shea, Ernst Oertel
5.30pm: Al Wathba Stallions Cup – Handicap (PA) Dh70,000 (T) 2,200m; Winner: AF Mukhrej, Tadhg O’Shea, Ernst Oertel
6pm: The President’s Cup Prep – Conditions (PA) Dh100,000 (T) 2,200m; Winner: Mujeeb, Richard Mullen, Salem Al Ketbi
6.30pm: Abu Dhabi Equestrian Club – Prestige (PA) Dh125,000 (T) 1,600m; Winner: Jawal Al Reef, Antonio Fresu, Abubakar Daud
7pm: Al Ruwais – Group 3 (PA) Dh300,000 (T) 1,200m; Winner: Ashton Tourettes, Pat Dobbs, Ibrahim Aseel
7.30pm: Jebel Hafeet – Maiden (TB) Dh80,000 (T) 1,400m; Winner: Nibraas, Richard Mullen, Nicholas Bachalard
TOURNAMENT INFO
Opening fixtures:
Friday, Oct 5
8pm: Kabul Zwanan v Paktia Panthers
Saturday, Oct 6
4pm: Nangarhar Leopards v Kandahar Knights
8pm: Kabul Zwanan v Balkh Legends
Tickets
Tickets can be bought online at https://www.q-tickets.com/apl/eventlist and at the ticket office at the stadium.
TV info
The tournament will be broadcast live in the UAE on OSN Sports.
UAE currency: the story behind the money in your pockets
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
Jebel Ali results
2pm: Handicap (PA) Dh 50,000 (Dirt) 1,400m
Winner: AF Al Moreeb, Antonio Fresu (jockey), Ernst Oertel (trainer)
2.30pm: Maiden (TB) Dh 60,000 (D) 1,400m
Winner: Shamikh, Ryan Curatolo, Nicholas Bachalard
3pm: Handicap (TB) Dh 64,000 (D) 1,600m
Winner: One Vision, Connor Beasley, Ali Rashid Al Raihe
3.30pm: Conditions (TB) Dh 100,000 (D) 1,600m
Winner: Gabr, Sam Hitchcott, Doug Watson
4pm: Handicap (TB) Dh 96,000 (D) 1,800m
Winner: Just A Penny, Sam Hitchcock, Doug Watson
4.30pm: Maiden (TB) Dh 60,000 (D) 1,600m
Winner: Torno Subito, Sam Hitchcock, Doug Watson
5pm: Handicap (TB) Dh 76,000 (D) 1,950m
Winner: Untold Secret, Jose Santiago, Salem bin Ghadayer
Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
How does ToTok work?
The calling app is available to download on Google Play and Apple App Store
To successfully install ToTok, users are asked to enter their phone number and then create a nickname.
The app then gives users the option add their existing phone contacts, allowing them to immediately contact people also using the application by video or voice call or via message.
Users can also invite other contacts to download ToTok to allow them to make contact through the app.
Brave CF 27 fight card
Welterweight:
Abdoul Abdouraguimov (champion, FRA) v Jarrah Al Selawe (JOR)
Lightweight:
Anas Siraj Mounir (TUN) v Alex Martinez (CAN)
Welterweight:
Mzwandile Hlongwa (RSA) v Khamzat Chimaev (SWE)
Middleweight:
Tarek Suleiman (SYR) v Rustam Chsiev (RUS)
Mohammad Fakhreddine (LEB) v Christofer Silva (BRA)
Super lightweight:
Alex Nacfur (BRA) v Dwight Brooks (USA)
Bantamweight:
Jalal Al Daaja (JOR) v Tariq Ismail (CAN)
Chris Corton (PHI) v Zia Mashwani (PAK)
Featherweight:
Sulaiman (KUW) v Abdullatip (RUS)
Super lightweight:
Flavio Serafin (BRA) v Mohammad Al Katib (JOR)
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Killing of Qassem Suleimani
The specs: 2018 Nissan 370Z Nismo
The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
Fuel consumption, combined: 10.5L / 100km
The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
Killing of Qassem Suleimani
U19 WORLD CUP, WEST INDIES
UAE group fixtures (all in St Kitts)
Saturday 15 January: v Canada
Thursday 20 January: v England
Saturday 22 January: v Bangladesh
UAE squad
Alishan Sharafu (captain), Shival Bawa, Jash Giyanani, Sailles Jaishankar, Nilansh Keswani, Aayan Khan, Punya Mehra, Ali Naseer, Ronak Panoly, Dhruv Parashar, Vinayak Raghavan, Soorya Sathish, Aryansh Sharma, Adithya Shetty, Kai Smith
The biog
Favourite colour: Brown
Favourite Movie: Resident Evil
Hobbies: Painting, Cooking, Imitating Voices
Favourite food: Pizza
Trivia: Was the voice of three characters in the Emirati animation, Shaabiyat Al Cartoon
Brief scores:
Toss: South Africa, chose to field
Pakistan: 177 & 294
South Africa: 431 & 43-1
Man of the Match: Faf du Plessis (South Africa)
Series: South Africa lead three-match series 2-0
If you go
Flight connections to Ulaanbaatar are available through a variety of hubs, including Seoul and Beijing, with airlines including Mongolian Airlines and Korean Air. While some nationalities, such as Americans, don’t need a tourist visa for Mongolia, others, including UAE citizens, can obtain a visa on arrival, while others including UK citizens, need to obtain a visa in advance. Contact the Mongolian Embassy in the UAE for more information.
Nomadic Road offers expedition-style trips to Mongolia in January and August, and other destinations during most other months. Its nine-day August 2020 Mongolia trip will cost from $5,250 per person based on two sharing, including airport transfers, two nights’ hotel accommodation in Ulaanbaatar, vehicle rental, fuel, third party vehicle liability insurance, the services of a guide and support team, accommodation, food and entrance fees; nomadicroad.com
A fully guided three-day, two-night itinerary at Three Camel Lodge costs from $2,420 per person based on two sharing, including airport transfers, accommodation, meals and excursions including the Yol Valley and Flaming Cliffs. A return internal flight from Ulaanbaatar to Dalanzadgad costs $300 per person and the flight takes 90 minutes each way; threecamellodge.com
FIXTURES
All kick-off times UAE ( 4 GMT)
Friday
Sevilla v Levante (midnight)
Saturday
Athletic Bilbao v Real Sociedad (7.15pm)
Eibar v Valencia (9.30pm)
Atletico Madrid v Alaves (11.45pm)
Sunday
Girona v Getafe (3pm)
Celta Vigo v Villarreal (7.15pm)
Las Palmas v Espanyol (9.30pm)
Barcelona v Deportivo la Coruna (11.45pm)
Monday
Malaga v Real Betis (midnight)
When Umm Kulthum performed in Abu Dhabi
Known as The Lady of Arabic Song, Umm Kulthum performed in Abu Dhabi on November 28, 1971, as part of celebrations for the fifth anniversary of the accession of Sheikh Zayed bin Sultan Al Nahyan as Ruler of Abu Dhabi. A concert hall was constructed for the event on land that is now Al Nahyan Stadium, behind Al Wahda Mall. The audience were treated to many of Kulthum's most well-known songs as part of the sold-out show, including Aghadan Alqak and Enta Omri.
Infobox
Western Region Asia Cup Qualifier, Al Amerat, Oman
The two finalists advance to the next stage of qualifying, in Malaysia in August
Results
UAE beat Iran by 10 wickets
Kuwait beat Saudi Arabia by eight wickets
Oman beat Bahrain by nine wickets
Qatar beat Maldives by 106 runs
Monday fixtures
UAE v Kuwait, Iran v Saudi Arabia, Oman v Qatar, Maldives v Bahrain
