Dubai real estate investment report – first half 2016

Dubai Land Department’s most recent report has revealed that AED 57 billion was invested in Dubai real estate in the first half of this year by local and international investors – great news for the UAE economy given the recent slump in economies across the world.

The 26,000 investors in Dubai real estate comprised of 149 nationalities, with the majority being GCC nationals who contributed AED 22 billion. Saudi Arabia citizens ranked second, after Emirati nationals, at second place with transactions amounting to AED 4 billion. In third place were Kuwaiti nationals, with Dubai property investment transactions worth more than AED 1 billion, followed by citizens of Qatar, Oman and Bahrain.

The total value of foreign investment in Dubai real estate hit more than AED 28 billion, spread across 14,314 investments by 149 nationalities. Indian nationals held top position, transacting for more than AED 7 billion worth of Dubai real estate. Briton nationals took second spot with a total of AED 4 billion worth of Dubai real estate transactions, while Pakistani investors came third with AED 3 billion worth of Dubai property investment transactions.

While it is no secret that Dubai real estate prices have softened since they reached their peak in 2014 and rents have seen periodic adjustments, the UAE’s unique selling propositions such as a highly smart, diversifying economy, security of investment and the promise of the hugely anticipated Expo 2020 has kept the interest in Dubai property investment alive. The diversity of the investor base reflects the wide range of property options offered by the UAE real estate market, investor confidence and sustainability of growth in the economy.

Further, while rents and prices have fallen between 10 and 15 percent since 2014, the Dubai real estate market is now relatively stable, with little change in rents and sale prices this year. Moreover, the much-anticipated Expo 2020 is expected to create new jobs, which will positively impact both sales and retail markets in the long term across the country and drive economic growth. Aside from real estate, Dubai offers a world-class business environment and infrastructure for start-ups and has emerged as a leader in pioneering luxe retail and hospitality projects. Moreover, measures that DLD is taking to improve the transparency of the Dubai real estate market will increase its attractiveness in what can be seen as the post-oil era in the coming years.