Abu Dhabi is proving a lucrative alternative to Dubai for Middle East property investors.
Speakers at the Wealth Arabia Summit Dubai revealed the UAE capital offers 30 per cent yield and presents itself as a better value proposition.
Real estate trends that the Wealth Arabia Summit addressed include: best practices in solving issues arising from cross-border real estate transactions, exploring trends and benefits of cross-border real estate transactions and unique and exciting case studies for HNWIs to learn from.
Luann Chamayne Parker, director, business development, IMKAN Properties, said: “Abu Dhabi real estate investment offers attractive 30% yield and a better value proposition. The Emirate has strong economic footings having 60% of GDP of the entire UAE, and holds the world’s second largest fund.”
The very top of Abu Dhabi’s residential sales market has been relatively positive, and is showing signs of stabilising. Sea facing villas on Saadiyat Island for instance, which remain the most expensive residential property type in the UAE capital, have seen no movement in prices for two consecutive quarters. This trend is likely to help tempt buyers back into the market especially as we feel the stability is likely to persist.
“For investing outside the UAE, London is the most sought-after choice for UAE and Middle East investors due to London’s stable economic, political and social systems,” said Murray Strang, head of Dubai management of Cluttons, a London-based property consultancy with office across the Middle East.
The Central London office market is currently undergoing a period of significant change. For UAE investors, Shariah compliant real estate investment attracts due to its clarity and interest.
Racha Alkhawaja, group chief distribution and development officer of Equitativa Group, said: “Real estate by nature is a long term plan. Currently slow market is good time for buyers for future investment that passes on to the children. Real Estate Investment Trust (REIT) she says are important for institutional investors with long term plans.