Source: Arabian Business
Dubai’s real estate market has experienced a phenomenal surge in property sales during the year 2023, setting new records and demonstrating the city’s resilience and attractiveness as an investment destination. According to a new report, over 120,000 property transactions were carried out, surpassing all previous years’ figures.
The report highlights the continued growth and stability of Dubai’s real estate market, despite the challenging global economic conditions. It underscores the city’s ability to adapt and thrive, attracting both local and international investors seeking profitable opportunities.
One of the factors contributing to this surge in property sales is the attractive pricing and flexible payment plans offered by developers. In recent years, the market has witnessed a shift towards more affordable housing options, making it accessible to a wider range of potential buyers. This inclusivity has played a significant role in boosting demand and driving up transaction volumes.
Additionally, Dubai’s strategic location as a global business hub and its reputation as a cosmopolitan city with world-class infrastructure continue to attract investors from all corners of the globe. The city’s commitment to innovation and sustainability has also positioned it as a leading smart city, further enhancing its appeal to investors looking for long-term value.
The report also highlights the growing interest in secondary market transactions, indicating a maturing market where investors are not only buying off-plan properties but also actively trading in the resale market. This trend reflects the confidence investors have in the future prospects of Dubai’s real estate sector.
Furthermore, the report points out that the majority of property transactions were conducted by UAE nationals, followed by investors from Saudi Arabia, India, the United Kingdom, and China. This diverse group of investors represents the global appeal of Dubai’s real estate market and the trust they place in its stability and potential for growth.
The record-breaking property sales in 2023 not only demonstrate Dubai’s resilience but also serve as a testament to the ongoing efforts by the government and relevant authorities to create an investor-friendly environment. Through various initiatives and regulations, Dubai has continued to strengthen its real estate sector, ensuring transparency and providing a secure investment landscape.
As we move into the next decade, Dubai’s real estate market is poised for further growth and innovation. The city’s ambitious projects, such as Expo 2020 and the development of new residential and commercial districts, will undoubtedly attract more investors and solidify its position as a global real estate powerhouse.
The 2023 sales underscores the city’s resilience, attractiveness, and commitment to providing a conducive investment environment. As Dubai continues to evolve and offer a diverse range of opportunities, the future looks promising for both investors and the real estate sector as a whole.
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The United Kingdom’s resilient property market is set to attract more Gulf capital in 2024, despite signs of a slowing global economy and rising interest rates. Industry insiders have revealed that investments in UK real estate from Gulf investors will remain strong this year, bolstered by recent deal activity and the forthcoming ETA visa scheme.
Data from real estate consultancy Knight Frank indicates that the 10-year average annual GCC investment into UK commercial property stands at around $3.4 billion. When considering investment in UK residential assets, the figure is even larger. The UK, and London in particular, is viewed as a safe haven for investors due to its cultural, historical, retail, and educational appeal.
However, higher interest rates have impacted demand for UK property. Last year, transaction levels dipped by approximately 10 percent, but prices remained relatively stable, with only a 2.1 percent fall in Prime Central London.
Despite these challenges, there is renewed optimism in the property market as the economy begins to stabilize and mortgage rates become more attractive. That said, with a general election expected in the summer, it’s unclear how long this window of opportunity will last.
The weakening of the British pound against other major currencies like the US dollar has made UK properties more attractive to Gulf investors. As a result, GCC-based investors have increased their allocation to UK real estate as they seek opportunities created by market distress.
Berkeley Group has noted a significant surge in purchase inquiries from the region, suggesting that the current position of the pound is not lost on investors. The multifaceted appeal of the UK property market, including long-term capital appreciation prospects and attractive financing opportunities, means the UK’s resilient property market is poised to lure more Gulf capital in 2024.
Although recent interest rate hikes may cool some property sectors, lower prices, and select yield plays appear to still attract Gulf investors. The UK real estate market remains a bullish prospect for Gulf investors, despite the economic slowdown.
Gulf Cooperation Council (GCC) investors are showing an increased sophistication and understanding of diverse opportunities in the UK real estate market. According to a report by CNBC, many economic observers have pointed to the Gulf states, particularly the UAE and Saudi Arabia, as leveraging their oil wealth and geographic advantages to make strategic investments1.
Simmons, a renowned real estate expert, noted that GCC investment in UK real estate significantly increased last year from 2022 levels, with activity witnessed throughout the UK and not just confined to Central London. He highlighted the region’s growing sophistication and understanding of the diverse opportunities available across the country.
Middle Eastern investors have been particularly active in prime market segments, ramping up deals targeting higher-value properties even as global transaction volumes fell in 20232. “We think GCC investment into UK Commercial Real Estate market will continue to grow throughout 2024 and be more in line with the long-term trend – [circa] £2.5 billion – £3 billion,” said Simmons.
Aiding this growth is the UK government’s recent implementation of a streamlined Electronic Travel Authorisation (ETA) visa scheme. Initially introduced for Qatari nationals in 2023, the scheme, which reduces bureaucracy for international travel and business visits to view assets, will be extended to include nationals of Bahrain, Kuwait, Oman, United Arab Emirates, Saudi Arabia, and Jordan starting February 13.
However, while the ETA scheme may assist in facilitating investment, it won’t be the primary driver of deals. “The ETA scheme may add some assistance but won’t be the main thrust behind the majority of decision-making,” said Simmons. Instead, he advises potential investors to tread carefully, highlighting the importance of partnering with the right advisors and being aware of the details in dealmaking.
As Gulf investors continue to grow more sophisticated in their investment strategies, the UK real estate market can expect to see continued interest and investment from the region in 2024.
