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Telegraph
10 hours ago
- Business
- Telegraph
One in five new buy-to-let companies owned by a foreigner
The number of new buy-to-let businesses owned by a foreigner has risen nearly 54pc to one in five, analysis shows. The share of buy-to-let companies set up by at least one non-British shareholder has increased from 13pc in 2016 to 20pc today, according to data by estate agency Hamptons. In London, the share of international landlords setting up new businesses is now more than one in four (27pc), up from 20pc in 2016. Indian investors made up the largest group of non-British shareholders setting up buy-to-let limited companies in the first half of 2025, followed by Nigerians, Polish and Irish. It marks a shift from the years from 2016 to 2019, when Irish were the largest group, followed by Chinese, Indians and Polish. These owners may reside in Britain, despite not being British citizens. The share of foreign shareholders coming from the EU has fallen from nearly two-thirds (65pc) in 2016 to less than half (49pc) this year. The research found that, at current rates, around 67,000 new companies will be set up by the end of 2025, with around 13,500 owned, at least in part, by non-British nationals. There has also been a fall in new shareholders from English-speaking countries, according to the data. In 2016, Irish, Americans, South Africans and Australians all featured in the top 10 list of foreign nationals with the highest number of buy-to-let businesses. By 2025, only Irish nationals remained in the top 10. Over half of the new companies set up in Kensington & Chelsea (54pc) and Hammersmith & Fulham (51pc) in the first half of 2025 were owned by non-British nationals. However, regions outside the capital have generally seen the largest growth in foreign ownership. Between 2016 and 2025, the share of new foreign national landlords more than doubled in the East Midlands, West Midlands and Scotland. Runnymede was the local authority with the highest share of new companies set up by non-British nationals this year, at 59pc. Hamptons estimates that 75pc of new buy-to-let purchases are now held in a company structure, which is often more tax efficient than individual ownership. The shift comes amid a buy-to-let crackdown by successive governments, with punitive taxes and tightening red tape leading to an exodus of landlords from the rental market as profits have dwindled. The share of properties sold to investors has fallen from 13.4pc in 2016 to 9.6pc today, according to separate Hamptons data. Critics have warned that Labour's upcoming Renters' Rights Bill will squeeze landlords further. The legislation – dubbed the biggest overhaul of rental law in 30 years – will end fixed-term tenancies, stop landlords from taking action against non-paying tenants for up to three months, and ban bidding wars by requiring landlords and letting agents to publish an 'asking rent' for the property. The bill will also eliminate Section 21, otherwise known as 'no-fault evictions', for all new and existing tenancies from next summer. Instead, landlords will need to rely on Section 8 to evict a tenant, a piece of legislation undermined by long court delays. It is due to become law in the autumn. One in three landlords is looking to sell off some or all of their rental properties, according to the latest English Private Landlord Survey, with just under two thirds blaming recent changes in legislation. Aneisha Beveridge, of Hamptons, said: 'Despite the challenges facing landlords, non-UK nationals are increasingly embracing UK buy-to-let. 'The London market has long been an international one, well-known across East Asia, the US, and the EU. 'However, demand from non-UK nationals has steadily been shifting into lower value markets outside the capital, where the bulk of growth in both house prices and rents has been seen in recent years. 'While overseas-based investors are part of the picture, the majority of purchases by non-UK nationals reflect domestic demand. 'Until 2021, this demand was most likely to come from EU nationals based in the UK, but since then, it has shifted to reflect changes in broader migration patterns. 'Indian and Nigerian nationals are increasingly likely to buy UK buy-to-let property in a limited company structure.' William Reeve, of letting agent software firm Goodlord, said: 'This data suggests the international landlords are viewing the UK rental sector more positively than UK nationals do – time will tell whether the rental sector is dilapidating or is a fixer-upper. 'It's a reminder of how the tax changes brought in over the past 10 years have made it very hard to earn a return as a personal UK resident taxpayer, who are now at a disadvantage relative to limited companies. These companies can expense full mortgage costs, unlike individuals, and pay tax at corporation rates rather than higher or additional [income] tax rates.'
Zawya
13-07-2025
- Business
- Zawya
Dubai's luxury real estate market breaks record with 62.7% surge in AED 10mln+ sales in H1
Dubai, UAE - Engel & Völkers Middle East, a leader in premium residential and commercial real estate services, reported a record-breaking first half of 2025, as Dubai's luxury property market outpaces global peers in scale, growth, and momentum. With 3,731 properties transacting above AED 10 million in H1 — up 62.7% from the same period last year — the emirate continues to redefine the global standard for ultra-prime living. The second quarter alone saw 2,388 high-end transactions, the highest quarterly total ever recorded. This segment now accounts for over 4% of the total market volume, compared to just 1.1% in 2020, marking a structural evolution in Dubai's real estate profile. A landmark AED 425 million sale in Emirates Hills and an AED 300 million beachfront villa deal on Palm Jumeirah were among the standout transactions in the first six months of the year. Engel & Völkers Middle East's performance reflects this surge in premium demand. The brokerage recorded a 48% year-on-year increase in transactions and a 40% rise in net commission income (NCI) in the first half of 2025, driven by sustained activity across the luxury and upper mid-market segments. This growth reflects the company's ability to consistently serve a global network of clients seeking exceptional real estate. Engel & Völkers Middle East also reveals a shift in buyer nationalities. Indian investors emerged as the top purchasing group, followed closely by buyers from Germany, the United Kingdom, and Portugal, underscoring the growing movement of people and capital from Europe and South Asia. Activity from many European countries, including Spain, Austria, the Netherlands, and Portugal, gained momentum. These are markets where Engel & Völkers has a well-established presence, enabling seamless support for clients relocating to or investing in Dubai. 'Dubai is no longer simply a hotspot for speculative investors but is now a permanent home for the world's elite,' observed Daniel Hadi, CEO of Engel & Völkers Middle East. 'With 62% growth in AED 10 million-plus sales and a growing population of resident millionaires, the luxury segment is no longer a niche, it is central to Dubai's real estate identity. From Emirates Hills to Palm Jebel Ali, we're seeing a structural shift in demand from global capital moving here for the long term.' The surge in ultra-luxury activity is mirrored by Dubai's broader economic trajectory. The emirate is on track to surpass 4 million residents this year, its fastest population growth since 2018 (Dubai Statistics Centre). Simultaneously, the UAE is expected to attract 9,800 new millionaires in 2025, more than any other country (Henley & Partners), reinforcing its status as a premier wealth haven. This ongoing inflow is underpinned by favourable tax conditions, lifestyle advantages, and long-term economic policies aligned with global capital migration trends. Dubai's residential market recorded a 22.7% year-on-year increase in sales in H1 2025, with transaction volume now more than six times higher than in H1 2020, underscoring the scale and velocity of the city's real estate expansion. Off-plan sales grew by 19.9%, reaching 54,742 transactions, while secondary market activity surged by 26.8% to hit 38,168 sales. Apartments remained the cornerstone of Dubai's residential market in H1 2025, with sales volumes climbing 18.2% year-over-year to reach 71,879 units. This segment accounted for nearly 79% of all transactions and over half of the total sales value. The off-plan segment continued to lead activity, driven by investor appetite in areas such as Jumeirah Village Circle, Business Bay, and Dubai Residence Complex. Notably, the secondary market's share of total transactions rose to 41.1%, marking its first H1 increase in several years — a sign of growing maturity and confidence among end-users and investors alike. Secondary market apartment demand remained concentrated in the areas of Dubai Marina, Downtown Dubai, and MBR City. Villas recorded a 27.6% year-on-year growth in transactions, with the total value rising to AED 78.3 billion, which is 53.5% increase compared to H1 2024. Demand was particularly strong for off-plan villas in emerging suburban communities, driven by the rising appeal of family-oriented living and the availability of larger homes at competitive entry points. New districts such as The Oasis, Grand Polo Club, and The Valley led villa transaction growth, illustrating the shift in buyer preferences toward more spacious layouts and integrated community environments. As villa sales volumes continue to scale, Engel & Völkers Middle East notes a broadening of the luxury map, with high-end villas now extending well beyond traditional core zones. Townhouses emerged as the fastest-growing residential segment in H1 2025. Sales surged by 57.4% year-on-year to 13,619 transactions, while total value climbed 64.7% to AED 42 billion — the strongest half-year performance on record for the segment. This growth was powered by robust off-plan launches in Damac Islands, Damac Hills 2, and The Valley, catering to families and investors seeking a balance between value, space, and long-term livability. Engel & Völkers Middle East sees this trend as a strategic evolution, with townhouses bridging the gap between high-rise living and villa-style privacy — particularly attractive to first-time buyers and resident families. Looking ahead, Engel & Völkers Middle East expects momentum to continue into the second half of the year. The launch of the First Home Buyer Programme, backed by major developers and UAE banks, is expected to unlock fresh demand from residents looking to transition from renting to ownership. Meanwhile, ongoing geopolitical neutrality, investor-friendly regulations, and the UAE's strong digital infrastructure are expected to shield the market from global economic headwinds. Dubai's fundamentals remain compelling: a growing population, diversified economy, world-class infrastructure, and a clear strategic vision for innovation. The emirate retained its position as the world's #1 destination for entrepreneurship in 2025 (Global Entrepreneurship Monitor), and recent initiatives such as the US–UAE AI Acceleration Framework signal long-term policy alignment with global technology trends. 'With no significant oversupply risks on the horizon and demand surging across every segment, Dubai's residential market is set to remain on an upward trajectory,' concluded Hadi. 'As Engel & Völkers, we are proud to support this transformation — not just as brokers, but as long-term partners to the world's most discerning buyers.' You can download Engel & Völkers Middle East Residential Market Report H1 2025 by clicking here About Engel & Völkers: Engel & Völkers is one of the world's leading service companies specialized in the brokerage of premium residential property, commercial real estate, yachts and aircrafts. For over 45 years now, the wishes and needs of private and institutional clients have had top priority, giving rise to the ongoing development of a range of services relating to all aspects of real estate. Sales and leaseholds, as well as consultancy for various investment opportunities in the real estate segment are among the core competencies of more than 16,700 people operating under the Engel & Völkers brand. The company is currently operating in over 35 countries on five continents. Intensive training schemes in its in-house real estate Academy and the high level of quality assurance governing its systematically structured service provision are key factors that account for the company's success. Engel & Völkers develops digital tools and IT products on an ongoing basis in order to keep its service as efficient as possible. In doing so, the company is setting new standards in digital solutions for property brokerage. About Engel & Völkers Middle East: Established in 2014, Engel & Völkers Middle East has its offices in Dubai, United Arab Emirates. The team consists of over 200 trusted agents, each focusing on premium residential and commercial properties, serving as experts in their respective areas. The company recently established a separate entity for commercial real estate (Engel & Völkers Commercial Middle East). Engel & Völkers Commercial serves as an entry point to exceptional commercial real estate opportunities in Dubai, from attractive office spaces to industrial complexes. The Private Office provides services for affluent clients and has access to premium real estate globally. Whether you're in the market to rent, buy, or sell a property, Engel & Völkers Middle East is a perfect choice to achieve your real estate goals.
