The number of Middle East homebuyers in London has doubled in recent months as investors seek a haven, agents report.
"The Arab Spring has had a direct and meaningful impact on the central London residential market," said Liam Bailey, the head of residential research for the consultancy Knight Frank.
Buyers from Bahrain, Iraq, Oman, Lebanon and Saudi Arabia led the surge, Mr Bailey said. The volume of buyers from the region increased by 100 per cent from January to May compared with the same period last year, he said.
Other London agents report similar increases in Middle East activity.
"There was a big upshoot in January when things kicked off in Egypt," said Martin Bikhit, the managing director of Kay and Co, another property agency. "Then it has gradually increased over time."
The number of Middle Easterners seeking property in the high-end neighbourhoods of Marylebone, Regent's Park, Hyde Park and Bayswater doubled in the first quarter of this year compared with the same period last year, according to Kay & Co. Middle East purchasers accounted for 30 per cent of the firm's inquiries, Mr Bikhit said.
While their interest can also be attributed to high oil prices and a favourable exchange rate, political unrest is the largest driving force, he said.
"People are jittery about what is happening," Mr Bikhit said. "People are taking a worst-case scenario."
Middle Easterners accounted for 10 per cent of sales in prime central London during the first quarter of the year, up from 7 per cent in the same period last year, said Yolande Barnes, the director of residential research for Savills.
Middle East buyers paid an average of £5.4 million (Dh32.6m) for houses in the most sought-after neighbourhoods, compared with £3.3m paid by UK buyers. Russians and Eastern Europeans are still the biggest spenders, paying more than £8m, according to Savills research.
The number of Middle East investors in London property surged in 2008 and 2009 at the height of the global downturn, then fell off last year, Ms Barnes said.
The current buyers are savvy investors who know London's neighbourhoods, she said.
"I don't think it is as reactionary a market as some people suspect," Ms Barnes said. "These are people who are global players."
She said the majority of Middle Easterners were buying homes for their own use, not as investments to resell.
Some were simply moving up to bigger homes, Mr Bikhit said. They have been looking for secure properties in good neighbourhoods or buildings with 24-hour security, "both of which are in short supply", he added.
Mr Bikhit expects this month and next month, traditionally the busiest period for Middle Eastern buyers, will be the biggest sales months of the year in central London. And that is likely to continue to drive up prices, which have risen steadily since 2009.
They are up 33 per cent since March 2009, according to Knight Frank data. That includes an 8.3 per cent increase in the past year, thanks largely to foreign interest.
Asian buyers accounted for 60 per cent of sales of new properties in London in the six months to the end of April, Knight Frank reported.
The strongest activity has been in the high end of the market. The average price of central London sales handled by Savills rose from £3m last year to about £5m in the first quarter this year.
kbrass@thenational.ae
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
The smuggler
Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.
Khouli conviction
Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.
For sale
A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.
- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
MATCH INFO
Uefa Champioons League semi-final, first leg:
Liverpool 5
Salah (35', 45 1'), Mane (56'), Firmino (61', 68')
Roma 2
Dzeko (81'), Perotti (85' pen)
Second leg: May 2, Stadio Olimpico, Rome
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
FIXTURES
Saturday, November 3
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Saturday, November 17
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Saturday, November 24
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