Dubai among top three priority cities for investments in real estate

61% of the wealthy UAE residents are going to invest in real estate: Cluttons.

Dubai was once again named among the world’s top three priority cities for investment in real estate, according to the data from a recent study conducted by Cluttons consultancy.

London and New York are still leading the investor’s demand for properties outside the UAE and Middle East, while Dubai has no rivals in this respect in the Middle East. This is evidenced by 2016 Middle East Private Capital Survey, conducted by Cluttons together with YouGov.

The report also mentions that high net worth individuals (HNWI) still largely regard real estate as the most reliable asset, for 61% of respondents opted in favor of this highly effective means of increasing capital yields.

With regard to return on investments, Dubai is far ahead of its competitors in the rating, especially in the commercial real estate sector most popular among real estate investors now, experts can confirm. Dubai can offer up to 7-11% of net yields, while London can get you only 4.8%, but the average duration of the lease contract in Dubai is less due to the highly dynamic nature of the Dubai office rental market.

"30% of UAE HNWI investors name Dubai in their top three most preferred cities, followed by Abu Dhabi at 23%. Dubai is both the leading target investment location as the 'most preferred' city as well as the most commonly mentioned city in investors' top three preferred locations in the Middle East", said the report by Cluttons.

While Dubai leading property market participants are talking of the Dubai’s bottoming out towards a new period of growth, many investors are speeding up to invest now, while prices are still plain. This applies also to the Dubai’s most far-sighted developers, has found out. Select Group engaged in the construction of three Dubai Marina Gate towers in Dubai Marina announced a purchase of another ‘stressed asset’ at a discounted price in the center of Dubai. It is known that it will be a 30-storey tower, possibly in the area of ​​Downtown Dubai.

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