Tuesday, April 22, 2008

UAE - the most preferred choice of property investment in the region

UAE property prices
Majority of foreign investors have purchased properties in the UAE than in any other Gulf States, reveals a recent survey by ArabianBusiness.com (Property Survey 2008).

About 95.5% of the respondents in the survey agreed that UAE was their popular choice of investment, being the leading market in the Gulf real estate boom.

According to the survey, majority of foreigners are purchasing properties as an investment, and are of the opinion that UAE would be the best Gulf market to yield maximum returns over the next two years.

Ever since the government opened its market for foreigners in 2002, the housing and rental prices have been on the increase, more so in recent years, due to housing shortage and high cost of construction.

The property prices in Abu Dhabi are likely to shoot up by 25% this year, according to a recent report by HSBC. In Dubai, a 15% rise is expected, as revealed by Standard Chartered Bank.

Among the 3000 respondents who participated in the survey, about 1.24% have purchased properties in Qatar, 1.04% in Bahrain, 0.52% in Saud Arabia, and 0.21% in Oman and Kuwait.

According to the survey, UAE is much ahead than Qatar, Saudi Arabia, Oman, Bahrain and Kuwait when it comes to offering best returns on buyer investments within a short-term.

For purchase of property, almost all nationalities favoured UAE over the other Gulf states. However, 10% of New Zealand nationalities had purchased properties in Bahrain, while 12.5% bought from Netherlands and Qatar.
The survey pointed out that no nationality had invested in the Kuwait realty sector, except Indians. It was also found that as majority of expatriates in the Gulf are Indians, they were the most active investors in the region, purchasing property in all the six Gulf States.

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