MANAMA, (Reuters) – Investors should take advantage of the downturn in British commercial property prices to snap up bargains, research published by Bahrain-based Islamic investment bank Gulf Finance House (GFH) said on Sunday.
The UK has been a popular destination for Gulf investment funds but a property boom in recent years may have deterred some investors, GFH said.
“Until recently, we hadn’t considered UK property as an attractive investment area as the prices being paid simply did not make sense to us,” the investment bank said.
“This correction in UK commercial property provides a buying opportunity for long-term investors … bear markets are a rare phenomenon in UK commercial property and the market doesn’t stay cheap for long,” it added.
Last week, Qatar’s $40 billion property investment arm Qatari Diar Real Estate Investment Co said it was planning more investments in UK property, after buying London’s Chelsea Barracks from Britain’s Ministry of Defence in January.
GFH, which predicted a general recovery in UK property prices was probably six months away, operates in accordance with Islamic law, which bans interest and investments in certain business sectors, such as alcohol and pornography.