Dubai a Haven for British Commercial Property Investors
Demand for Quality Real Estate with Strong Yield Opportunities Leads UK Investors to Dubai
According to the Dubai Land Department, British citizens emerged as the second largest investors in Dubai real estate last year, investing more than £1.9 billion. This figure is on target to be exceeded in 2016 due to growing UK investor demand for high quality real estate.
Dubai’s property market fundamentals are made up of world-class infrastructure and a regulatory environment that ranks among the most favourable in the world.
Masood Al Awar, Dubai Properties Chief Commercial Officer said, “The Emirate of Dubai and Dubai Properties present an attractive investment haven of real estate investments. We believe that the combination of our offerings combined with UAE’s stability, continued economic growth and high returns on investment are appealing vital drivers to the growing British investors”.
Dubai has been a hive of activity in recent years, with major infrastructure and real estate developments rolled out ahead of the prestigious World Expo 2020, due to be hosted by the Emirate.
Sentiment among foreign investors for Dubai’s real estate has been rising significantly over the last 18 months, buoyed by interest from British buyers seeking the safety of less volatile markets than at home.
Property prices in the UK continue to rise, crushing yield expectations for many investors in the British buy-to-let market. This has led to an exodus of UK investors looking for yield opportunities elsewhere in the world and Dubai has been a happy recipient of increased buyer interest, particularly from Britain.
However, there has been a significant shift in the type of real estate popular among British investors.
Before the global financial crisis, residential property was the vehicle of choice for savvy property investors in the Emirate. However as the 2020 Expo deadline nears, attention has been more focused on opportunities in the commercial sector, particularly the office market.
Dubai’s authorities are looking to harness the increased profile the Expo affords it, to establish the Emirate as a hub for international business activity in the Middle East. Its central location in the UAE and more liberal climate make Dubai the perfect destination for the increasing number of businesses looking to expand operations in the Gulf.
The Emirate’s business and leisure tourism sector, also known as ‘bleisure’ is growing exponentially which is throwing out significant yield opportunities for foreign investors in Dubai. In particular, the arrival of co-working office providers Our//Space has been welcomed by buyers, with investment almost fully-subscribed ahead of the opening of the firm’s new collaborative workspace in Dubai.