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Overseas investors flock to Dubai property market

DUBAI, MARCH 10: Dubai’s property market has witnessed a rise in the number of overseas investors three months into 2011 even as the construction work has picked up on the previously announced projects.

Although some delays are likely, it has been said that no major cancellations are expected to happen to the projects targeted for completion this year, Mr Michael Michael, Director of Sales at Landmark Properties, said in a statement.

Also instilling confidence in Dubai’s economic status is the survey recently released by The Foreign Investment Office of the Dubai Economic Department, which stated that more than 80 per cent of investors plan to maintain or increase their investment in Dubai.

Throughout the start of 2011, Landmark Properties — one of the largest property brokerage agencies in the UAE — has witnessed an increase in interest, specifically from overseas investors seeking property within Dubai.

Mr Michael Michael said: “From the end of last year onward, we have seen a definite increase in interest from overseas clients.”

He added: “Such investors are mainly from countries within the GCC or Eastern Europe, indicating a growing sentiment that Dubai’s property market is now offering investors greater value for money.”

“Although the market is still relatively immature in terms of large institutional overseas investors, Dubai now seems to be back on the agenda for many parties,” Mr Saeed Hashmi, Head of Valuation and Advisory at Landmark Advisory, said.

According to Mr Hashmi, the type of property overseas clients are looking for varies, with many wanting to invest heavily across various property sectors.

He also confirmed that “in comparison to mature western markets, investment property in Dubai attracts much higher equivalent yields, i.e. over 9 per cent for prime property, albeit under differing terms,” suggesting that the significant yield margin and long-term growth prospects in certain sectors is re-attracting healthy investment appeal.

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