HNWIs weigh up the trade-offs of UAE

The ongoing conflict in the Middle East has served as a reminder that the region’s stability can’t be taken for granted. It has re-framed the perception of London for many and we have seen more decisiveness and commitment from some buyers as a result.

Whilst we’re not seeing expat clients make knee-jerk reactions by leaving, some are investigating their options and many school admissions teams have reported significantly increased enquiries from Dubai based families, lining up school places should they need them if the situation continues longer term or escalates further.

It should be recognised that a great deal of tax planning and commitment goes into an international move and returning to London is not a straightforward decision. Expats who are three or four years into a five-year favourable tax position are unlikely to leave early. But those who are only one or two years into the five-year period may cut ties.

Of those who were planning to relocate to the region, many have suspended or ruled out those plans. We have seen this filter into the London sales market, where a number of off market properties we were due to show clients have now been withdrawn, where the owners are no longer moving to the UAE.

Whether we see an uplift in activity from Middle Eastern buyers remains to be seen. With Eid celebrating the end of Ramadan just last Friday, now is the time we would expect more interest - as one recently said, “London property is always a stable currency”.