Wealthy GCC investors are taking advantage of slow market conditions by snapping up bargain Dubai property investment opportunities. Latest data reveal that Dubai remains the most popular destination for high net-worth investors in the GCC and chosen by 27 per cent of respondents, compared with 21 percent people citing Abu Dhabi and 8 percent opting for Sharjah. Other cities such as Doha, Kuwait City, Riyadh and Muscat are also preferred destinations for property investment amongst GCC investors.
Recent data from Dubai Land Department shows that GCC investors comprised the largest Dubai property investor segment in 2015, spending AED 44 billion. The majority of this spending comprised of Emiratis who spent AED 26 billion followed by Saudi nationals who spent AED 10 billion last year.
While global locations such as London and New York continue to remain popular and established real estate destinations, Dubai property investment has captured the attention of the region’s wealthy and continues to have mass appeal. Why? Because the UAE continues to provide secure and viable investment opportunities for foreign investors seeking long-term wealth preservation and attractive returns.
Additionally, Dubai offers a wide range of property investment options to GCC investors – from the very affordable and low-end such as International City and Discovery Gardens, right to one of the most expensive addresses in the world. While oil prices remain below the long-term average, Dubai property market’s prudent and improved regulatory environment, a well-diversified economy, realistic rentals and increased maturity are indicators that the market will eventually self-correct, leading to sustained confidence amongst GCC investors.
Moreover, with Expo 2020 just round the corner, Dubai will see 25 million additional visitors for the six-month mega event. As the prep for Expo 2020 picks up, the Emirates anticipate a significant rise in the number of jobs and increase in demand for residential and commercial real estate.