Both property and jewellery is extremely sought after in Dubai’s Gold Souq.
- Dubai’s Gold Souq is attracting a huge number of foreign jewellery buyers
- Property in the vicinity is selling at record levels due the limited nature of supply
- More Emirati investors have purchased property than they have gold – the traditional investment safe haven
Dubai’s new Gold Souq is proving to be popular with both tourists and property investors.
According to a recent report published by Gulf News, 70% of all sales at the jewellery site are now made by overseas visitors to Dubai and the gold bought from the souq represents the biggest single purchase they make while staying in the emirate. The publication cites market sources as stating the average gold or jewellery-related transaction is now estimated to be 6,000 AED (£1,000).
As a result, the limited properties that are still available at the souq are now being snapped up, while existing jewellers are looking to increase their visibility at the site by paying to have extensive interior and exterior renovations.
“Based on projections of future demand, we could add an additional 5,000 sq ft on the first floor,” said MP Ahmad, Chairman of Malabar Gold told Gulf News. “While jewellers have expanded elsewhere in the city, and some even into malls, the Gold Souq remains the heart of the trade. It’s one of the top destinations in Dubai for tourists and those who are likely to make all jewellery-related transactions there itself.”
He explained that creating new-build locations at the Gold Souq would be very difficult and consequently, any new lease acquisitions are being conducted at record transfer values.
Earlier this year, a survey conducted by IP Global and YouGov found that 53% of Emirati investors had opted for property, while only 43% had opted for gold, showing the confidence that many people have in the real estate investment market both in Dubai and further afield.