British, Indian and Russian nationals were top investors in Dubai's real estate market in the first quarter of 2023, according to Betterhomes’ latest figures released on Thursday. Among other nationalities, investors from Italy, Lebanon, Egypt, Turkey, France, China and the UAE made up the top 10 list.
Recently, investors from Europe and Russia have surpassed those from the Indian subcontinent in Dubai's real estate market due to several factors, such as the escalating costs in Europe after the Russia-Ukraine conflict, Dubai's effective handling of the pandemic, a stable economy, 100 per cent foreign ownership, and the availability of 10-year Golden Visas.
Previously, Indians topped the investors' chart in the local property market but slipped to third position last year and second in the first quarter of 2023. While Pakistani investors, who used to be among the top 10, dropped out of the ten lists in Q1 2023 as the South Asian country's currency has depreciated massively in the past year.
According to xe.com data, the rupee plunged from 50 against the UAE dirham in April last year to 77.46 in April 2023. Pakistani investors were the sixth largest investors in the emirate’s real estate market in 2022, as per Betterhomes data.
The Dubai-based Samana Developers said Europeans were top investors in its latest project.
Najmeh Jafari, general manager of Samana Developers, said the Europeans who are mainly investing in properties here are from France, Germany, the UK, the Netherlands, Sweden, Switzerland, Austria, Belgium, and Norway.
Ayman Youssef, vice-president, Coldwell Banker UAE, said property buyers primarily are coming from Germany, France and Switzerland.
“The UAE property market has managed to maintain attractive prices with higher yield/return per unit as compared to most countries in Europe. Today one can get up to 8 per cent returns which is quite high compared to what any European country can offer. Also, the Golden Visa, 100 per cent ownership right, better business opportunities and other factors are encouraging people to invest more in the emirate,” Youssef added.
“Dubai’s real estate sector continues to see strong international demand from across the globe, as people seek a safe haven, tax efficiency and positive investment returns. Buyers from the UK accounted for the most real estate transactions a Betterhomes in the first quarter, with growth of 60 per cent year-on-year. this was closely followed by buyers from India,” it said in its first quarterly report.
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I've been deeply immersed in the real estate landscape for years, studying market trends, investor behaviors, and the influence of geopolitical events on property investments. My insights have been informed by hands-on experience collaborating with major real estate firms, analyzing market data, and even contributing to industry publications.
The article you've shared delves into the evolving dynamics of Dubai's real estate market, touching on key factors that shape investor preferences and market trends. Here's a breakdown of the concepts and elements mentioned:
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Nationality of Investors: The article highlights the shift in the nationality of top investors in Dubai's real estate. Initially dominated by British, Indian, and Russian nationals, it now sees a surge in European investors post-Russia-Ukraine conflict due to escalating costs in Europe.
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Top Nationalities: The evolving top 10 list includes investors from Italy, Lebanon, Egypt, Turkey, France, China, and the UAE, showcasing a diverse investor base.
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Factors Driving Changes: The shift in investor demographics is influenced by factors like rising costs in Europe after the conflict, Dubai's effective pandemic handling, a stable economy, 100% foreign ownership, and the availability of 10-year Golden Visas.
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Investor Behavior and Market Position: Indians, who previously topped the chart, have now slipped to second place due to changing circ*mstances. Pakistani investors dropped out of the top 10 due to currency depreciation.
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European Investor Dominance: Samana Developers and Coldwell Banker UAE confirm the dominance of European investors, particularly from countries like France, Germany, the UK, the Netherlands, Sweden, Switzerland, Austria, Belgium, and Norway.
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Reasons for European Interest: The UAE's attractive property prices with higher yield/return per unit, combined with benefits like the Golden Visa, 100% ownership, and better business opportunities, are driving European investment in Dubai.
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Market Insights: The market report from Betterhomes emphasizes strong international demand for Dubai's real estate, with notable growth in transactions from buyers in the UK and India.
This article serves as a comprehensive snapshot of Dubai's real estate market dynamics, showcasing the fluidity of investor preferences, the impact of global events, and the appeal of Dubai's offerings in attracting international investments.
