Dubai has always been a major attraction to residential property buyers from all over the world because it has emerged as a major global metropolis and everyone wants to own a part of that. Buyers and investors from all over the world are increasingly taking interest to buy properties in Dubai.
Recent reports indicated that Indian property buyers topped the list of foreign property buyers in Dubai, followed by buyers from Pakistan and UK investing in the property market dominantly.
The other major foreign investors in Dubai’s realty sector are from Iran, Canada, Russia, United States, China, France and Afghanistan; meanwhile Jordanians topped the list of Arab investors. This positive growth reflects the momentum gained by Dubai’s real estate market which is reasserting itself on the global stage. The influx of funds from Arab countries, which are affected by civil unrest, has also significantly helped Dubai’s real estate sector remain strongly.
Dubai’s tax-free property status mainly lures these foreign investors. Other major factors that attract more foreign investors in to the realty market are the safe-haven appeal of the city, tightly regulated property market, solid national economy, excellent growth potential, strong capital value gains and attractive rental yields. The lifestyle offerings of the city, security and peaceful atmosphere ensured by the authorities, and Dubai's world-class infrastructure are also among the most important influencing factors to identify Dubai as their property investment destination.
The recent increase in property deals by foreigners also underscores the impact of the economic rebound on Dubai's appeal as an investment hot spot, coupled by the requirements fuelled by Dubai’s preparation to host Expo 2020. The market confidence in the future growth of Dubai’s real estate sector is actuality based on tangible measures and recent performance. The value of the real estate transactions increased several folds since the rebound of the market in 2013.
Performance of the realty sector has been extremely good during the past couple of years, with the increasing housing demand as people from different parts of the world are moving to Dubai. Thanks to the increased investor confidence in Dubai properties and the growth in deals. These are the positive indicators for further growth, both in terms of quality and quantity. When the residential property prices increased double last year in Dubai, it caused fears in some corners about another market bubble and subsequent crash akin to that of 2009; however experts confirmed that the market is stronger.
The market is also witnessing the foreign demand base expanding from individual investors to institutional players. However, the trend is not in favour of overseas investors when it comes to buying commercial properties, office buildings or hotels and other prime income-producing assets in the city, as the major chunk of such properties are owned by the developers and wealthy families.
Launch of several new residential projects in the market target foreign investors, who show great interest in such projects, especially in exclusive communities. Considering this, many developers are focusing on expansion of well-established communities creating a sense of exclusivity and delivering on the promise. The future will witness more demand from foreign investors, in light of forthcoming major projects announced by the government and several private sector developers.
By Yash Shah
(Property Sales & Leasing Manager at SPF Realty)
Special to Freehold, Gulf News, November 01, 2014
Recent reports indicated that Indian property buyers topped the list of foreign property buyers in Dubai, followed by buyers from Pakistan and UK investing in the property market dominantly.
The other major foreign investors in Dubai’s realty sector are from Iran, Canada, Russia, United States, China, France and Afghanistan; meanwhile Jordanians topped the list of Arab investors. This positive growth reflects the momentum gained by Dubai’s real estate market which is reasserting itself on the global stage. The influx of funds from Arab countries, which are affected by civil unrest, has also significantly helped Dubai’s real estate sector remain strongly.
Dubai’s tax-free property status mainly lures these foreign investors. Other major factors that attract more foreign investors in to the realty market are the safe-haven appeal of the city, tightly regulated property market, solid national economy, excellent growth potential, strong capital value gains and attractive rental yields. The lifestyle offerings of the city, security and peaceful atmosphere ensured by the authorities, and Dubai's world-class infrastructure are also among the most important influencing factors to identify Dubai as their property investment destination.
The recent increase in property deals by foreigners also underscores the impact of the economic rebound on Dubai's appeal as an investment hot spot, coupled by the requirements fuelled by Dubai’s preparation to host Expo 2020. The market confidence in the future growth of Dubai’s real estate sector is actuality based on tangible measures and recent performance. The value of the real estate transactions increased several folds since the rebound of the market in 2013.
Performance of the realty sector has been extremely good during the past couple of years, with the increasing housing demand as people from different parts of the world are moving to Dubai. Thanks to the increased investor confidence in Dubai properties and the growth in deals. These are the positive indicators for further growth, both in terms of quality and quantity. When the residential property prices increased double last year in Dubai, it caused fears in some corners about another market bubble and subsequent crash akin to that of 2009; however experts confirmed that the market is stronger.
The market is also witnessing the foreign demand base expanding from individual investors to institutional players. However, the trend is not in favour of overseas investors when it comes to buying commercial properties, office buildings or hotels and other prime income-producing assets in the city, as the major chunk of such properties are owned by the developers and wealthy families.
Launch of several new residential projects in the market target foreign investors, who show great interest in such projects, especially in exclusive communities. Considering this, many developers are focusing on expansion of well-established communities creating a sense of exclusivity and delivering on the promise. The future will witness more demand from foreign investors, in light of forthcoming major projects announced by the government and several private sector developers.
By Yash Shah
(Property Sales & Leasing Manager at SPF Realty)
Special to Freehold, Gulf News, November 01, 2014
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