Dubai property: Average of 120% returns since 2008

Dubai property: Average of 120% returns since 2008

Real estate in the emirate has proven to be one of the strongest investments since the global financial crisis.

Summary:

  • New research has found that Dubai property has been one of the best performing investments in the nine years since the global recession
  • Real estate in the UAE city has delivered average yields and capital growth of 120% since 2008
  • Ahead of Expo 2020, many experts in the city believe 2017 could potentially mark the beginning of a new period of growth for Dubai’s property market

Those with property assets in Dubai have made some of the biggest average gains since the global financial crisis of 2008.

That’s according to the findings of a new report by Reidin/Global Capital Partners, which calculates that average returns from yields and capital appreciation has reached 120% over the last nine years.

The report notes the impact the recession had on the Dubai property sector, with a number of large projects cancelled or postponed. But with new government regulations introduced since 2008 helping to stabilise the Dubai market, it is now beginning to return to buoyancy.

Dubai’s average returns during this period are also significantly higher than many other major global cities. The report noted that yields and property prices have increased by just 75% in London and 63% in New York.

In contrast to other assets, Dubai’s property returns are 30% higher than the 90% gold has delivered since 2008, though still trail the returns investors on the high-risk Nasdaq US equities index have achieved.

With this in mind, the report summarised that “it is therefore of little surprise that Dubai has become a magnet for international investors for real estate, and monetary inflows have continued to increase steadily over the last decade”.

Expo 2020, an event which will bring 25 million visitors to the city and boost the economy to the tune of an estimated $23 billion, is expected by many experts in Dubai to significantly drive performance in the emirate’s property sector. Real estate firms, including Knight Frank and CBRE, have recently predicted that prices and rents will rise in 2017 as the city prepares to host the global event.

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