Dubai is the most attractive city globally for GCC property investors
Dubai has retained its title as the most attractive city in the world for real-estate investments among GCC residents, a new study has found.
The UAE also ranks first among real-estate investors in the GCC region, the Real Estate Barometer study by internet-based market research firm, Yougov and real-estate fair Cityscape Global said.
Asked where they felt most confident investing their money globally, 69% of Gulf residents picked Dubai as the ‘go to’ city for real estate investment.
Two thirds (66%) also expected Expo 2020 in Dubai to increase property buyer interest in the UAE.
A further 45% of respondents chose the UAE as their preferred site for property investment, up from 42 per cent in 2016.
The research also found that more than half (59%) of respondents planning to buy a property in the next year prefer to buy in the GCC, with the average GCC budget sitting at $717,000, compared to the average global budget of $561,000.
The research came on the heels of the opening of region’s largest real-estate exhibition Cityscape in Dubai, this week.
The show’s Exhibition Director Tom Rhodes said the research provides important insights into current market conditions and helps exhibitors forecast expectations for real estate investment.
"With on-site sales permitted for UAE-based projects the first time at Cityscape Global this year, we anticipate a lot of interest from investors who will be able to attend the event to capitalise on attractive price options and make informed purchasing decisions directly on the show floor.
The most highly sought-after residential property among buyers was two to three bedroom apartments, with 53% of residents opted for this size.
Rhodes said that these findings show a shift in consumer mind-set when it comes to the most in-demand properties.
“Additionally, we’ve seen a change of investor mind-set when it comes to the size of property sought after, shifting from one bedroom and studio apartments in 2016 to a majority (54%) seeking two to three bedroom apartments shown by this year’s results.
This could signal a vote of confidence from investors and homebuyers as reports point to a rejuvenation in the real estate sector."
The survey also highlights that exactly half of respondents feel that there’s a gap in the market for affordable housing.
Macro-economic concernswere also evident concerns for potential investors with 72% citing concerns about the state of the local economy, and 68% pointing to a lack of trust in brokers and developers, while 67% exhibited concern for the security in the market of interest.
Rhodes added: "The research tells us that investors are seeking value for money (88%), good quality of housing (87%) and easy access to major roads (75%) when buying residential units, so these are all factors our exhibitors can promote and communicate to visitors at their stands this year.
Kailash Nagdev, Managing Director for YouGov in the Middle East region said, "The annual Real Estate Barometer is designed to track Middle East property market sentiment to help the industry expand with its future investors in mind.
Buyers also expect residential property prices to tumble with 56% of the survey respondents expect the sales price of properties to decrease in their country of residence, while 59% expect the rental price of properties to also decrease in their country of residence.
Cityscape Dubai runs from the 11-13 September this year in the Dubai World Trade Centre.
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