British amongst the highest Investors in the UAE

British nationals have contributed US$8.47 billion (AED31.1 billion) in Dubai's real estate throughout the last four years (2014-2017), as indicated by statistics released by Dubai Land Department, DLD. The United Kingdom is one of the biggest investment source markets for Dubai's real estate.

Following the Brexit vote in 2016 the subsequent move for separation from European Union by the British Government, Britain has witnessed a massive outflow of capital towards alternative investment.

Following the Brexit vote in 2016 the consequent move for partition from the European Union by the British Government, Britain has seen surge of capital towards outbound investment.

Moreover, the sound regulatory system and strong foreign investor protection makes Dubai an idyllic market for venture for British investors other foreign investors in Britain who need to secure their money in a more steady and higher-yield environment, of which the UAE possesses all the necessary qualities.

The International Real Estate and Investment Show, IREIS, is additionally set to attract the greatest global names within the real estate industry to London with IREIS 2018 – UK Edition. To be held at one of the prime areas of London City "The Queen Elizabeth II Center", Westminster from 22nd-23rd June, 2018, the show serves a one-stop for UK investors who are looking for the ideal investment opportunities in the UAE.

Organised by DOME Exhibitions, the IREIS 2018 – UK Edition will host a spectrum of property developers, investment and real estate brokerage companies which will showcase the latest offers across the seven emirates and around the world.

“UAE thrives with its low tax environment, world-class infrastructure and 100 percent ownership prospects for foreign investors in selected zones, the UAE has rapidly risen as one of the most sought-after choice among foreign investors,” Antoine Georges, Managing Director of DOME Exhibitions, said.

"UAE flourishes with its low tax environment, world-class framework and 100 percent ownership prospects for overseas investors from specific regions, the UAE has quickly ascended as a standout location amongst foreign investors." Said Giovanni Caradonna, Managing Partner, HYA.

“With the upcoming Expo 2020 Dubai ahead, the country is expected to possess such key drivers that will uphold a healthy outlook for the real estate market, further cementing its position as the top tourism and business hub in the world. Several government initiatives had also been launched to fast-track investors’ transactions within the country, with the Dubai Land Department reducing transaction period to 10 days.

With the upcoming Expo 2020 Dubai ahead, the country is expected to see additional drivers solidifying it’s a healthy outlook for the real estate market. A few government activities have likewise been launched to fast-track investors’ transactions within the country, with the Dubai Land Department reducing transaction period to 10 days.

 “The UAE holds exactly what British investors look for in each venture: high quality real estate with a promising return on investment. This opportunity, combined with a prosperous economic growth and stability are vital drivers to the UAE’s increasing investors’ base.”

"The UAE holds precisely what British investors search for in each venture: premium real estate that delivers a promising rate of profitability. This opportunity, joined with a generous economic growth and stability are crucial drivers to the UAE's expanding investors’ base." Quoted Patrick Parmeggiani, Partner, HYA.

Improved Regulation and Focus on Digital Technology to Confirm Dubai ‘Safe Haven’ Position for Investors.

The past years have proven Dubai has reached a good level of resilience toward worldwide economy fluctuations, like the one caused in late 2015 from the deep decrease of oil price.

Resilience, political stability and a clear, ambitious development plans for the future are right fundamentals to attract foreign investment and to generate the right level of confidence in foreign investors, whilst always maintaining a vibrant economy.

The positive investment background has improved in the past years also thanks to the Dubai Government implementation of a new and more articulated set of rules, regulating the financial sector, and the focus on a future supported by digital technology.

Digital technology has become an essential application in all sectors when considering the path to the future, when planning on how to improve the future for the people and to improve shared prosperity.

The UAE is working hard to reach a top position for what regards trust and number of opportunities, so to set an improving trend in terms of the investment attractiveness of the Country.

  

Huge Investment Capital Deployed in Dubai ahead of Expo 2020

It is a matter of fact the full commitment of Dubai to make the EXPO 2020 the opportunity to show the world the level of advancement of a relatively new city and its ambition to confirm its role as the regional and one of the top world business hub.

Transport and Infrastructure, housing construction and hospitality infrastructure represent the core of Dubai investment.

Civil infrastructures and transportation investments count for 17.4 BnUSD, housing construction sees 13.2 BnUSD and 11 BnUSD is the total investment in hotels and theme parks.

Within the infrastructures, the development of new Al Maktoum Airport count for 8 BnUSD and is meant to increase the capacity of Dubai airport to 160 Million travelers, considered that the Dubai International Airport in 2017 has counted a traffic of 88Millions travelers.

Underway projects of a new metro line, new Dubai Exhibition City, various new housing and hospitality developments are meant to serve an expected ambitious 300,000 visitors per day to this first ever EXPO assigned to a Middle Eastern Country.

All the present effort is focusing on diversifying Dubai economy to be able to depend always less and less form the oil revenues (counting today for 6% only of Dubai public revenues) and is expecting to boost the city business and work opportunities.

Real Estate is expected to play a role in the boost of business opportunities and in welcoming all those who will come to visit and work in Dubai in the coming years.

The Government capital investment and the concentrate effort to show the best shape of Dubai during EXPO 2020 is meant as well to position the City Sate on top of world ranking and to create the economic dynamics to keep the same position for the years to come.

Dubai positioned fourth in most visited cities globally

Dubai has once again set a new record for tourists visiting the city in 2017, recording a total of 15.79 million tourists last year, in comparison to the 14.9 million overnight visitors in 2016.

Data revealed by Dubai’s Department of Tourism and Commerce Marketing (Dubai Tourism) presented that Dubai has confirmed its fourth position in most visited cities globally. Dubai is drawing ever closer to the 2020 goal of welcoming 20 million visitors per year by the start of the next decade.

"Our strong 6.2 per cent growth in 2017 has allowed us to ramp up the pace towards meeting our 2020 targets, and today Dubai's travel and tourism sector is not only well-positioned to offer a superlative destination experience across its eight core strategic propositions, but also geared to accelerate its appeal to the diverse and evolving needs of our global travellers," said Helal Saeed Almarri, director-general of Dubai Tourism.

A recent opening of leisure, family and cultural attractions such as the Dubai Opera, City Walk, IMG Worlds of Adventure, Dubai Water Canal, Dubai Parks and Resorts, Etihad Museum, La Perle by Dragone, Deira Islands, Dubai Safari Park and Dubai Frame have added to the overall attractiveness of the city.

The top 3 visitors in terms of nationality were:

India 2.1 million visitors

Saudi Arabia 1.53 million visitors

UK 1.27 million visitors

“The influx of visitors is a positive sign for everyone in Dubai, after a slightly softened real estate market in 2017 we are seeing strong signs of recovery. 2018 has already got off to a fantastic start, the demand is there, investors are only seeking confidence in the ever-developing market.” Quoted Giovanni Caradonna, High Yield Advisors.

High Yield Advisors (HYA) expects a stronger real estate market for Dubai in the coming years due to unlimited opportunities that are becoming available for investors.

Home to over 200 nationalities, Dubai has become one the world’s most diverse places to live and work and has ultimately become a real estate investment destination for people from all over the world. 

“Dubai has always been an area of interest for investors, particularly because of its high return on investment. With increased development in its legislation and because of its diversified offering Dubai will always set itself apart and investors should be confident.” Quoted Patrick Parmeggiani, HYA.

HYA outlined some key trends in which investors should watch out and which could help investors decision and thought process for 2018.

Infrastructure Boom

The recent release of the budget confirms to the strong financial plans in place from the Dubai government. There was a 20 per cent rise of spending in 2018 compared to an average rise of eight per cent across last five years. The sharpest incline was in infrastructure expenditure, driven predominantly by construction projects associated to the World Expo 2020 (more than a 40 per cent increase). As Dubai continues to pump money into the system, we can expect to see a positive multiplier effect across different sectors of the economy, particularly in real estate and financial services.

“Developers continue to release projects on the outskirts, this extending the boundaries of the city, the residential areas continue to grow at a fast pace.”

Price Change

A common question been asked amongst investors is whether prices have stabalised or will they continue to fall in 2018. In 2017, city-wide prices fell around 3 per cent, comparative to 8% the previous year. The decrease in rate of change is a positive sign that prices have stabilised throughout the market. Additionally, prices in some areas have seen an increase in sales price; such as Jumeriah Lake Towers, Dubai Marina and Sports City. However, investors should remain mindful that unlike price falls, recovery is a gradual and continual process in real estate assets.

The oversupply fallacy

Another hot topic which was an area of wide debate among investors and advisories was the fear of oversupply. As 2017 ends, analysts estimate that 34,000 units will be delivered into the market, on the other hand, only 65 per cent of these have been completed. 2018 predicts a further 70,000 units will be delivered. Though, a revised forecast considering cancelled, stalled and delayed projects discloses that we should expect only a 44 per cent completion rate. Therefore, this suggests that the fear of an oversupply is speculative, especially against the expected population growth rises on the verge of Expo 2020 attraction and new businesss opportunity.

 

 

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