UAE among top realty hotspots globally
People walk past a Cityscape Global signboard in Dubai.
Dubai - Country ranks second best for residential investment globally, says Savills
By Issac John
Published: Tue 8 Sep 2015, 12:00 AM
Last updated: Wed 9 Sep 2015, 2:55 AM
The UAE ranks as the world's second best country for residential investment, according to international real estate advisor Savills' new rankings.
The US tops the list and Singapore comes in third as per the ranking made on the basis of economic growth and market recovery of those countries.
"The UAE comes second for residential investment potential, as domestic wealth creation and increasing demographic and regional demand continues to grow. The Dubai market has seen this type of more robust demand take the place of more speculative overseas investment in recent years but Dubai is too near the top of the present cycle to top the invest ability league," Savills said.
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The latest research by Dubai Land Department revealed that real estate investment in the emirate for the first half of 2015 exceeded Dh53 billion. Indian investors account for a large percentage of this spend. The report said of the Dh53 billion in total, from 19,848 investors from 142 countries, around Dh7.8 billion of transactions were carried out by Indians. This was followed by British and Pakistani investors. The boost in property investment is a result of both Dubai and the UAE's diversification policies.
"The Dubai real estate market is evidence of this success, with its ability to attract buyers from around the world. They have confidence in the future stability of the market and faith in the assurances provided in terms of a rewarding return on investment," said Sultan Butti bin Mejren, director-general of the DLD.
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The Savills World Residential Investability Ranking focuses on countries with cities and resort locations that have consistently attracted investor interest over recent years. It also advises investors to combine an understanding of macro metrics with an appreciation of local, shorter term drivers of house prices.
Ranking 14 leading countries on the basis of broad economic and demographic factors, Savills looked at key demand variables such as population growth, wealth and economic growth, alongside supply and price levels, in order to see which countries are set to perform best. It lists the United States of America a clear number one for investability on the basis of economic growth and market recovery potential.
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Local considerations had to be taken into consideration, the firm said.
"There is a world of difference within the USA between top tech cities and languishing rustbelt ones," said Yolande Barnes, director of Savills world research. Savills tips San Francisco among the very best of their selected residential markets.
David Godchaux, CEO of Core, the UAE associate of Savills, said the current softening of Dubai's residential prices offer investors a good opportunity to buy into a market which has strong growth potential over the next five years.
"We expect prices in Dubai to rebound in 2016 as the UAE gears up for EXPO 2020," Godchaux said.