Investment from the Gulf Cooperation Council (GCC), a Middle Eastern alliance comprising Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE), has continued to pour into London over the last 12 months to take advantage of cut-price deals, according to AlRayan Bank.

The bank’s third annual research report, which surveys 150 high-net-worth investors from Saudi Arabia, Qatar and the UAE with at least £10m in wealth or assets, found that 29% had invested in London property in the last 12 months.

This was ahead of New York (23%), Paris (23%), Los Angeles (22%) and Tokyo (21%).

The survey found that confidence in the UK property market is high, with 93% of investors saying this had increased in the last 12 months due to five Bank of England base-rate cuts, falling prices in prime London postcodes and a housing shortage that continues to push up rental yields.

The introduction of visa-free travel for GCC nationals and the UK’s relatively low capital gains tax rate of 24% have also added to the UK market’s draw, the bank said.

Giles Cunningham, chief executive of AlRayan Bank, said: “London’s status as the top global destination for GCC property investors comes as no surprise; its unmatched blend of lifestyle, security and strong returns continues to set it apart.

“This year’s report highlights not only enduring confidence in London’s property market, but also a growing appetite for opportunities across the UK’s towns and cities.”

Within the capital, investor preferences are shifting. While central London still attracts the largest share, with 38% of survey respondents citing it as a desired location for property investment, east London (36%), the suburbs (33%) and north London (29%) are increasingly on the radar, reflecting the appeal of regeneration projects and improved transport links.

London remains the front-runner, but GCC investors are also broadening their focus across the UK. Liverpool is the top regional hotspot for the third consecutive year followed by Cardiff, Brighton, Birmingham and Edinburgh.

The report found that strong returns and rental growth are the leading investment drivers, cited by 57% of survey respondents, closely followed by favourable purchase terms (56%).

Sustainability is also climbing up the agenda, with 95% of investors seeking green investments and factoring environmental performance into their decisions.

Maisam Fazal, chief commercial officer at AlRayan Bank, said: “As the findings show, London will remain the benchmark for global real estate, but the regions are playing an increasingly important role in portfolios.”

Property Week’s analysis ‘Who owns London in 2025?’ found that Qatar Investment Authority was the fifth largest landowner in London, ahead of the King.