Overseas property investors are looking back at Dubai according to industry experts. Enquires for property in Dubai increased last year following reported price growth in some of the emirates more exclusive residential areas such as Dubai Marina and The Palm. However since the beginning of 2011, there has been significant interest in Dubai property with an increasing number of investors entering the market.
One local estate agent said “From the end of last year onwards, we have seen a definite increase in interest from overseas clients. 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”.
The Foreign Investment Office of Dubai Economic Department has come to similar conclusions after conducting a recent survey. The comprehensive report highlighted that 80% of all investors asked are planning to not only maintain their current investments but increase their interests in Dubai in the near future.
Saeed Hashmi, Head of Valuation and Advisory at Landmark Advisory, said: “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.”
“In comparison to mature western markets, investment property in Dubai attracts much higher equivalent yields, i.e. a nine per cent plus for prime property, albeit under differing terms, suggesting that the significant yield margin and long term growth prospect in certain sectors is re-attracting healthy investment appeal.”
Select Property, the largest seller of UAE property in Europe has also experienced a considerable increase in enquiries for Dubai property. So far in 2011 Select Property have received an incredible 157% increase in Dubai property enquiries compared with the same period last year. More importantly, interest is accelerating every month with January gaining 88% more enquiries than December, February receiving 153% more enquiries than in January and March starting very strongly.