Booming tourism and robust economic growth predictions are key drivers in attracting overseas investors to Dubai’s real estate sector, says Matthew Bate, CEO of Engel & Volkers.
Dubai’s thriving tourism industry is one of the major drivers in attracting greater foreign investors and buyers to the emirate’s equally thriving real estate market.
Potential investors from key markets such as: India, Pakistan, Saudi Arabia, UK, Egypt, Jordan, Lebanon, China and the US, have all expressed a growing interest in exploring opportunities here, especially across properties that can be rented out for profit or held as investments.
Indeed, my company has itself reported an increase of a significant 40 percent in enquiries this year from international buyers and investors.
Dubai features among the top ten fastest growing premium property markets globally
Winning the bid for the World Expo 2020 continues to boost government investment enabling the progress of improved infrastructure, stability and security for both domestic and international investors.
In addition to this, the Dubai Land Department’s (DLD) legal frameworks are set to further protect investors and consumers alike. As forecasts predict Dubai’s economy is set to grow from 3.8 percent to 4.5 percent in the coming years, it ranks as the most popular city for second home purchases among global high-net-worth individuals.
With strong economic growth and low interest rates, the demand for premium real estate in the emirate is expected to continue well into 2018.
Dubai’s appeal is set to spike further in the eyes of international investors, given the surge in real estate investment opportunities ahead and the government plans for 2020 and beyond.
According to most recent statistics from the DLD, foreign buyers accounted for around 20 percent of real estate transactions in the eighteen months up to June 2017. DLD also revealed that buyers from these markets invested AED 151 billion into Dubai realty during this period.
Crucially, international investors have started returning to the Palm Jumeirah, buoyed by competitive prices and significant capital development from Nakheel – including the new Nakheel Palm Jumeirah Mall, The Pointe Retail, new F&B outlets, Palm Beachfront Restaurant developments, and the Golden Mile Galleria.
Investors have been quick to appreciate the Palm Jumeirah is reaching its full potential, and on completion of these projects property prices are expected to appreciate. Buy-to-let investors, end users, and second home owners are the core buyers on the Palm, however, enquiries for premium properties in the AED 10-25 million range have been encouraging over the summer.
Personally, I have experienced a recent surge in enquiries from more than 25 different nationalities seeking investments on the Palm Jumeirah. Enquiries range from apartments to villas, plots and hotels – which shows that investor confidence is stable.
This all reinforces the fact that this world-famous development is the number one choice for international investors in Dubai, and is the community that signals a resurgence in the market.
By Matthew Bate, CEO of Engel & Volkers Dubai