Prime residential and commercial values rose in Q1 2016 as investors continue to recognise Dubai as the Middle East’s top real estate destination.
- Luxury and high-end residential and commercial properties in Dubai are gaining strong foreign investor sentiment
- Values rose by 2% in the first quarter of the year
- British investors spent £1.9 billion on Dubai real estate in 2015
Dubai continues to be the most popular real estate market in the Middle East for the world’s investor community.
Average monthly yields are currently reaching as high as 10% in some areas of Dubai and, with the prospect of strong economic growth in the coming years, increasing numbers of foreign investors are being attracted to the city’s property sector.
According to the latest Knight Frank report, high-end properties in the residential and commercial markets saw average values rise by 2% in the first quarter of 2016 compared with the final quarter of 2015.
Despite an arguable period of correction over the last few years, Dubai has maintained much of its investment allure among international investors. Government-imposed regulation measures also means that investors can now enter the market with more surety than before the 2008 global economic crisis.
“Dubai is still considered as a safe haven,” said Zarah Evans, Managing Partner of Exclusive Links real estate brokers. “Property prices are reaching their lowest, mortgages rates are at their lowest and there remains the tax free advantages.”
“Foreign investment has always dominated the market here whilst local residents who have lived the highs and lows of the Dubai property market are, at times, more cautious.”
In a further boost, it was reported earlier this month that Dubai’s private sector is showing ‘robust growth’ as the emirate continues to move away from its reliance on oil-based markets.
As the city gears prepares to become the first Middle Eastern city to host the world expo, property prices in some of Dubai’s key districts are expected to rise by as much as 50% in the coming years as a direct result of Expo 2020.