2017 sees a strong start for the Dubai real estate market in light of increased investor interest.
- Increased investment interest from China, India and Saudi Arabia saw Dubai real estate sales achieve a high of AED12billion in the first two weeks of 2017
- Experts attribute this sales increase to a number of factors, including Dubai’s new safe-haven status and investor friendly policies
- The positive economic forecast continues to drive investor interest in Dubai property
As result of new investment interest from China, India and Saudi Arabia, Dubai’s real estate market made a strong start to 2017, achieving a sales high of AED12billion in the first 15 days of the year.
Should this growth trend continue, Dubai Land Department (DLD) predicts Dubai will achieve real estate deals worth AED292billion in 2017, up by almost 20% from 2016. The latest economic figures do indeed support DLD’s sales prediction, revealing expected economy growth of 3.1% this year, up from 2.7% in 2016.
Industry experts attribute the increase of investment in Dubai property to a number of factors, including the country’s safe-haven status, investor friendly policies and a recent upsurge in oil prices.
For Saudi investors in particular, levels of capital growth achieved over recent years, a wider range of available properties and limitations on the ability to buy off-plan projects at home all contribute to Dubai’s investment appeal.
Another attraction for Saudi buyers is the stability of the currency. Craig Plumb, Head of Research at JLL Middle East and North Africa, commented: “Unlike investors from Russia, India or the UK, which have been hit by the appreciation of the US dollar over recent years, Saudi investors have benefited from currency stability between the UAE dirham and the Saudi riyal. Dubai is also relatively close to home for Saudi investors, which makes it easy to monitor and visit their properties.”
Positive economic forecasts suggesting Dubai property prices will remain stable throughout the first half of 2017, rising as we move further into the year are now attracting more and more investors worldwide.
With a large number of properties due for delivery ahead of the World Expo 2020, 2017 presents a prime opportunity for foreign investors looking to purchase Dubai real estate.