As Dubai’s real estate market continues to rebound, investors are increasingly seeking out quality stock.
According to Jones Lang LaSalle’s (JLL) latest research report, titled “Investor Sentiment Survey: Dubai Real Estate Market H1 2016”, nearly two-thirds (64 percent) of respondents said they were planning to increase their investment in Dubai real estate over the next 12 months.
This is a significant increase from the 49 percent who said they were planning to do so in the previous JLL survey, conducted in H2 2015.
The main reason cited by investors for this increased appetite for Dubai real estate is the city’s improving economic fundamentals. In fact, nearly half (49 percent) of respondents said that they believe Dubai’s economy will improve in the next 12 months.
Other reasons cited include the city’s improving real estate market (cited by 39 percent of respondents) and the availability of attractive investment opportunities (cited by 37 percent of respondents).
“Dubai’s real estate market is continuing to rebound, and this is attracting increasing interest from investors,” said Craig Plumb, Head of Research at JLL MENA.
“The emirate’s improving economic fundamentals are a key driver of this interest, as investors believe that Dubai is well-positioned to benefit from the anticipated pickup in global economic growth over the next 12 months.”
Plumb added that Dubai’s status as a safe haven for investment is also attracting interest from regional and international investors.
“Dubai is seen as a relatively safe haven for investment at a time when there is considerable uncertainty in many other markets around the world,” he said.
“This is particularly true for investors from the Middle East and North Africa region, where political and economic instability has led many to seek out safe havens for their capital.”
The JLL research also found that Dubai’s residential sector is the most popular target for investment, with nearly half (49 percent) of respondents saying they are planning to invest in this sector over the next 12 months.
This is followed by the office sector (39 percent), the retail sector (38 percent) and the industrial sector (34 percent).
When it comes to specific investment strategies, the most popular option is to buy properties for rental income (cited by 54 percent of respondents) and property management Dubai. This is followed by buying properties for capital appreciation (cited by 45 percent of respondents) and investing in property development projects (cited by 39 percent of respondents).
“Investors are clearly taking a long-term view on Dubai’s real estate market, with many seeking to benefit from the city’s strong population growth and its status as a regional hub for business and tourism,” said Plumb. see more
“As such, we expect to see continued strong interest from investors in properties and in property management companies in Dubai in the months and years ahead.”
