UAE properties offer higher returns than Far Eastern markets.
The UAE leads the Gulf region in terms of overseas real estate investments, said Richard Divall, head of cross-border capital markets at Colliers International EMEA.
In total, Gulf investors invested more than $ 3.9 billion (Dh15.74 billion) in different real estate sectors in Europe, the United States and Asia last year, with the United Arab Emirates investing 2 , 2 billion dollars (8.8 billion Dh) followed by Kuwaitis (1.1 billion euros) and Saudi Arabia (600 million euros).
Most of the investments in the Middle East by regional investors have been in the retail, hospitality and housing sectors, Divall said in a presentation at the Cityscape Conference on Tuesday.
The UAE’s main investment destination was the US market with € 970 million, followed by € 592 million in the UK, € 133 million in India, € 131 million in Germany and of 63 million euros in Italy.
While the main target markets for Kuwaiti investors were the United States (? 768 million), the United Kingdom (? 250 million), Canada (? 41 million), the Netherlands (? 40 million) and Singapore (? ? 8000000).
“The UAE is a market focused on the US and UK; and now India is attracted to institutional investors from this region as well. For Saudis, UK is more preferred because it is more attractive, ”he said.
“We are seeing more and more money wanting to invest in real estate in different regions. Asia-Pacific has seen a huge boost over the past two years as all markets in Asia-Pacific benefit from foreign investment. There is a bit of a recovery in America and a slight slowdown in EMEA because the UK is well below investment volumes, ”he said.
Real estate in the UAE is not only affordable now, but rental yields are also double that offered by markets in the Far East, industry executives have said.
“Typically the rate of return in Thailand, Malaysia and other neighboring markets is around two to three percent. If we get a 4% return, it’s a jackpot. But here in Dubai, returns can reach 7%, which is incredible, ”said Kashif Ansari, CEO of IQI, a global real estate, investment and advisory firm based in Malaysia.
Bilal Moti, Managing Partner of Windmills Valuation Services, pointed out that where in the world investors can have up to 7.5% net rental income through passive investment and which developed city in the world offers an average price of $ 225 per square foot.
“Expo 2020, a low interest rate regime, sufficient liquidity with banks and increasingly relaxed immigration regulations are strong positive indicators and conducive to the recovery of the Dubai real estate market to its resilient conditions. in the near future, “he said.
IQI and Windmills Group, a real estate appraisal and brokerage firm, have signed a memorandum of trade association. The strategic alliance will give Windmills access to IQI’s resources around the world, including its customers, projects and platform, and allow the two companies to collaborate in all areas of the business.
“We are optimistic about our continued strategic expansion in the Mena regions. With the upcoming Expo 2020, we believe the UAE will continue to serve as a regional real estate business hub due to its strategic location, international accessibility and strong legal system. Said Ansari.
Shan Saeed, chief economist at IQI, said the real estate market may attract relatively limited investor attention today compared to the periods 2002-2008 and 2012-2013 due to the time lag between current supply and the expected growth in demand in the near future.
“Few regional policy challenges also remain an issue in the minds of investors. I think both topics are contingent and short-term in nature. Relatively strong US dollar and positive outlook for oil prices,” he said. added.
Benazir Moti, Managing Director of Windmills International Real Estate Services, said the main objective of the association with IQI is to promote the lucrative UAE real estate market in Asia, Australia and Canada through the extensive network of offices. IQI in these regions. – [email protected]