More Than 50% of UAE’s Wealthy Likely To Invest In Property
Survey indicates a willingness to invest by the country’s wealthy despite uncertain economic conditions
More than 50% of high net worth individuals in the UAE will likely invest in property in their target city this year despite global economic headwinds, according to a new report.
In a Cluttons/YouGov survey of individuals who have made or intend to make an investment of $1-M or more in property, 61% of UAE respondents said they would look to invest in cities including London and New York.
The 2 cities were the 1st and 2nd destinations of choice for high net worth people from the Middle East, while Dubai was the preferred location within the region.
“The strength of the US dollar, to which the UAE retains a fixed peg, has certainly contributed to the strong appetite for global property investments, particularly in the face of mute local and international economic conditions, which have been traditional triggers for capital flight to perceived investment safe havens,” said Cluttons Middle East CEO Steven Morgan.
Prime property prices in central London are expected to grow 2.5 to 3% this year, according to Cluttons, but New York appeared more frequently in investors’ Top 3 preferred cities for investment.
The survey showed that residential property remained the most attractive investment for UAE HNWIs, with 22% of those surveyed indicating a preference for offices as an investment class.
Cluttons head of research Faisal Durrani said this was despite larger yields of 7 to 10% in Dubai, compared to 4.8% in London, due to the longer length of office rental contracts in the UK capital.
The Emirates’ HNWI’s also ranked locations within the Middle East in their Top 3 investment targets over the next 12 months, with Dubai (30%) and Abu Dhabi (23%) the most popular locations.
“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,” Mr. Durrani said.
The post More Than 50% of UAE’s Wealthy Likely To Invest In Property appeared first on Live Trading News.