US prop­erty is top over­seas pick for UAE in­vestors

The Pak Banker - - BUSINESS -

The US, UK, Aus­tralia, Sin­ga­pore and Ger­many are the top five des­ti­na­tions for UAE res­i­dents look­ing to in­vest in prop­erty over­seas, ac­cord­ing to a YouGov sur­vey com­mis­sioned by IP Global.

When asked where they would con­sider in­vest­ing in prop­erty abroad, the US topped the list, with 21 per cent say­ing they would con­sider in­vest­ing there. The UK with 19 per cent, and Aus­tralia with 16 per cent, were the se­cond and third most pop­u­lar choices re­spec­tively. Sin­ga­pore and Ger­many rounded out the top five, with 13 per cent of re­spon­dents choos­ing th­ese coun­tries as pre­ferred in­vest­ment des­ti­na­tions.

When it comes to se­lect­ing as­sets to in­vest in, UAE prop­erty was the most pop­u­lar as­set class for UAE in­vestors. More UAE res­i­dents cur­rently in­vest in prop­erty (42 per cent) than stocks, shares or bonds (30 per cent), un­der­lin­ing the con­tin­ued ap­peal of real es­tate as an as­set class that pro­vides sta­ble re­turns.

The sur­vey of more than 1,000 UAE adults found that 41 per cent of re­spon­dents iden­ti­fied tax as a rea­son that would pre­vent them from in­vest­ing in prop­erty as­sets over­seas. Mean­while 33 per cent of re­spon­dents said a lack of un­der­stand­ing of for­eign laws in the coun­try where prop­erty is lo­cated is also an in­vest­ment ob­sta­cle.

Richard Brad­stock, di­rec­tor and head of the Middle East at IP Global, said: "The US has proved the most pop­u­lar mar­ket for UAE in­vestors. Cities such as Mi­ami and Chicago of­fer great in­vest­ment po­ten­tial, with prop­erty in the Windy City cur­rently achiev­ing av­er­age rental yields of over 7.5 per cent."

"The UK has al­ways been a pop­u­lar mar­ket to in­vest in, but outer Lon­don and re­gional cities such as Manch­ester and Birm­ing­ham, due to their ro­bust economies and growth op­por­tu­ni­ties, have def­i­nitely seen in­creased at­ten­tion from for­eign in­vestors. Manch­ester prices are fore­cast to grow 26.4 per cent be­tween 2016 and 2020, pre­sent­ing an in­cred­i­ble op­por­tu­nity for in­vestors."

"We have also no­ticed a grow­ing in­ter­est in Ger­many as UAE res­i­dents recog­nise the ex­tra­or­di­nary value that real es­tate in cities such as Ber­lin present. For ex­am­ple, in 2015 the me­dian prop­erty price in­crease in Ber­lin was 18.5 per cent."

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