GCC residents continue to prefer UAE as real estate investment country

Business Saturday 09/September/2017 16:37 PM
By: Times News Service
GCC residents continue to prefer UAE as real estate investment country

Muscat: The United Arab Emirates (UAE) has retained its top position as the most appealing country to invest in real estate in the world for Gulf Cooperation Council (GCC) residents, while Dubai is the most preferred city, according to new research.
The latest Real Estate Barometer study, conducted in partnership between YouGov and Cityscape Global, asked GCC home buyers and real estate investors where they feel most comfortable investing their money globally and 45 per cent of respondents cited the UAE, up from 42 per cent in 2016, while 63 per cent chose the UAE from among countries in the Middle East specifically.
Collectively, 69 per cent of respondents chose Dubai as the ‘go to’ city for real estate investment, with two thirds (66 per cent) expecting the impact of Expo 2020 Dubai to increase property buyer interest in the UAE.
The research was revealed ahead of Cityscape Global, the annual barometer for the real estate industry in emerging markets and one of the largest, most influential property events globally, which returns to the Dubai World Trade Centre from Monday, September 11 and will end on Wednesday, September 13.
“The research findings give us a great insight into the current market conditions and certainly help us and our exhibitors to set forecasts for upcoming real estate investment expectations,” Tom Rhodes, exhibition director, Cityscape Global, said.
“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 pricing options and make informed purchasing decisions directly on the show floor,” he added.
More than half (59 per cent) of respondents, who intend to buy a property in the next year, prefer to buy in the GCC, with the average GCC budget sitting at $717,000, compared with the average global budget of $561,000. The most highly sought-after residential property to buy is a two to three bedroom apartment; 53 per cent of respondents opted for this unit size.
“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,” Kailash Nagdev, managing director for YouGov in the Middle East region, said.
“The 2017 study indicates a minor decline in sales and rental property prices in the UAE, but overall real estate investment sentiment for the UAE looks positive. Respondents are telling us a strong regulatory framework, good supply of residential properties at different price points and the upcoming Expo 2020 will be the key drivers of a healthy outlook for Middle East real estate,” he added.
Within the residential property price movement, the expectation in the market is for prices to come down; 56 per cent of the survey respondents expect the sales price of properties to decrease in their country of residence, while 59 per cent expect the rental price of properties to also decrease in their country of residence.
Survey respondents in the GCC indicated the importance of location in residential properties in the study, with 43 per cent opting for close proximity to educational facilities, 42 per cent for healthcare facilities, followed by grocery stores (35 per cent) and place of work or business (33 per cent). UAE residents, however, particularly prefer properties close to grocery stores, at 40 per cent.
“Research tells us that investors are seeking value for money (88 per cent), good quality of housing (87 per cent) and easy access to major roads (75 per cent) when buying residential units, so these are all factors our exhibitors can promote and communicate to visitors at their stands this year,” Rhodes added.
“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 per cent) seeking two to three bedroom apartments as shown by this year’s results. This could signal a vote of confidence from investors and homebuyers as reports point to a rejuvenation of the real estate sector,” he added.
The survey also highlighted that exactly half of the respondents feel that affordable housing is missing from the GCC real estate market, while 31 per cent believe there is a lack of reliable brokers and 28 per cent wish for better access to data comparing existing properties. Certain macro-economic factors emerge as elements of concern for potential investors; 72 per cent cited the state of the local economy, 68 per cent highlighted a lack of trust in brokers and developers, and 67 per cent showed concern for security in the market of interest.