Changes in the UK's non-domicile tax rules are driving a large-scale property sell-off by long-term GCC investors particularly in London. The British government's plan to abolish non-dom status by April 2025 has led to a rush of asset liquidations by GCC property owners, prompting a shift of capital back into the GCC region, especially Dubai.

The property sales in London are attracting a new wave of GCC investors with some ultra-high-net-worth individuals (UHNIs) even considering relocating their businesses and primary residences to the GCC. The tax relief offered to new residents in the UK is also drawing fresh GCC investment into London, particularly in areas like Kensington, Mayfair and Knightsbridge.

Despite some reduction in exposure by long-term GCC investors, demand for Central London properties remains steady. Both Dubai and London markets are expected to complement each other in 2025 with Dubai’s tax-free environment and lifestyle benefits continuing to attract global investors.