UAE realty a safe haven for buyers
Staff Report/Dubai Khaleej times
Filed on September 5, 2015 | Last updated on September 5, 2015 at 06.46 am
“Unlike other markets in the region, overseas investors can purchase freehold title in real estate in large parts of Dubai.”
British investors are showing no signs of slowing down after pumping more than Dh4.7 billion into the UAE real estate market in the first half of 2015.
According to the Dubai Land Department, the total sum of foreign investment in Dubai’s property sector exceeded Dh53 billion, with the UK accounting for the second largest number of investors after India.
These figures emerge as the Middle East’s largest property event Cityscape Global opens its doors on Tuesday to an expected audience of more than 50,000 participants.
“The other major attraction of Dubai is the potential it offers for foreign investors to realise long term capital gains.”
CRAIG PLUMB, HEAD OF RESEARCH AT JLL MENA
Craig Plumb, head of research at JLL Mena, said: “Dubai is by far the most popular real estate market in the region in terms of attracting foreign capital, with foreigners investing more than Dh43 billion over the first half of 2015 (accounting for almost 80 per cent of all sales).
“Unlike other markets in the region, overseas investors can purchase freehold title in real estate in large parts of Dubai. The market is also more mature and better regulated and offers investors a greater choice of product than other cities in the Middle East.
“The other major attraction of Dubai is the potential it offers for foreign investors to realise long term capital gains. While the market is currently in a cyclical downtown and the prospects for short term capital gains are limited, average prices increased by more than 50 per cent over the two years to the middle of 2014, providing significant gains for many investors.”
With both international and local investors looking to take advantage of the stabilising property prices in the UAE, more than 300 exhibitors will be gearing up to showcase their developments.
Developers from the UK, Turkey, Qatar, Egypt, the Americas, Canada and China will be out in force at the event, which takes place at the Dubai World Trade Centre from September 8 to 10.
Shan Saeed, chief economist, IQI Group, Malaysia, one of the overseas exhibitors at Cityscape Global, believes now is the prime time for international investors to get a foothold in the real estate market. “The equity market is witnessing an unprecedented amount of uncertainty and volatility. Clients globally in the financial markets have lost $211 billion in wealth destruction in the last two months,” Saeed said.
Saeed added: “Savvy clients are looking for safe havens for their precious funds as the bloodbath in the global markets continue. There is a strong correlation between decline in equity values and rise of real estate markets globally. Real estate is the new global currency and has taken centrestage in asset portfolio of smart investors. How the markets behave in H2 2015 could be the million dollar question for many nervous investors but real estate is the way forward.”