Top 5 Countries For UAE Overseas Property Investors
The United States tops the list, new survey finds
Over 20% of United Arab Emirates (UAE) residents are mulling international property investment look to the United States market, a new survey has found.
The YouGov survey commissioned by property investment firm IP Global found that the US topped the list of destinations for UAE residents looking to invest in property abroad with 21% of the votes.
It was followed by the United Kingdom (19%) and Australia (16%), with Singapore and Germany (both 13%) rounding off the Top 5 preferred investment destinations.
The survey, which polled 1,000 UAE residents, also found that property was the most popular asset class for the country’s investors.
More UAE residents currently invest in property (42%) than stocks, shares or bonds (30%).
However, 41% of respondents also identified tax as a reason that would prevent them from investing in property assets overseas.
Another 33% said a lack of understanding of foreign laws in the country where property is located is also an investment obstacle.
Director and head of the Middle East at IP Global Richard Bradstock said: “As the results show, the US has proved the most popular market for UAE investors. Cities such as Miami and Chicago offer great investment potential, with property in the Windy City currently achieving average rental yields of over 7.5%.
“The UK has always been a popular market to invest in, but outer London and regional cities such as Manchester and Birmingham, due to their robust economies and growth opportunities, have definitely seen increased attention from foreign investors. Manchester prices are forecast to grow 26.4% between Y 2016 and Y 2020, presenting an incredible opportunity for investors.”
However, the challenges highlighted by the survey’s respondents showed that there was greater scope for increasing overseas property investment from the UAE.
“Although many UAE citizens are experienced investors, the results have revealed a large gap in international property investment understanding,” said Bradstock.
“There is still a lot of room for overseas property to increase in popularity as an asset class, especially to core ‘safe haven’ cities such as London as volatile global financial markets hold sway.”
The UAE was one of 5 countries where the survey was conducted, with the others including Hong Kong, Singapore, the UK and South Africa.
The overall results highlighted that the US is among the Top investment destinations for respondents outside of Asia. Australia is also among the Top 3 investment markets for real estate in all 5 countries.
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