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Top nationalities investing in Dubai’s real estate sector over the last year

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Dubai continues its trajectory of being a magnet for global real estate investors looking to invest in the region.

A recent study by Betterhomes has revealed that Dubai is a top real estate investment hub for global investors looking to invest in the region in 2022. Bolstered by strong capital growth, high yields and government-led initiatives in the property sector, Dubai continues to be a prime target for investors.

NATIONALITIES INVESTING IN DUBAI

Indians emerged among the top nationalities investing in real estate in Dubai, followed by UK nationals and Italians, while Russian nationals represented the fourth-largest group, followed by French buyers in fifth place.

The study by Betterhomes looked at trends in Dubai’s real estate market over H1 of 2022, while also revealing the top nationalities investing in in property in the emirate.

According to the study, buyers from the UK and France saw double-digit growths at 18% and 42%.

For Betterhomes, the war in Ukraine, domestic tax concerns and an increasingly mobile workforce are some of the key reasons given for the increased migration of Europeans from their home countries, along with Asia Pacific investors relocating to Dubai as the result of COVID restrictions.

Looking at Chinese buyers, Betterhomes revealed that they continued to drop in their rankings (but still remained in the top 10) in the face of continued COVID lockdowns.

According to the report, DLD recorded 37,762 total units sold from January through June this year, 60% higher than the same period in 2021, setting a new record for transactions in the emirate. There was also an increase of 85% in the total value of sold properties compared to H1 2021.

“Globally, many real estate markets are showing signs of slowing down in the face of rising inflation and the inevitable response in the form of rising interest rates. It is important that we do not repeat the mistakes of the past and believe the UAE is impervious to these factors; however, I am confident that our market is uniquely placed to weather any short-term storm and, as we have shown throughout the pandemic, could well be a net beneficiary of global uncertainty,” said Richard Waind, Group Managing Director of Betterhomes.

GROWTH IN INTERNATIONAL INVESTMENT INTO THE UAE REAL ESTATE

According to the report, growth in international investment into the UAE real estate sector is on the rise as current returns are attractive due to recent volatility in the equities and crypto markets globally.

“While the recent long-term visa linked to a property purchase of AED 2 million has been universally well received, we would urge that more could be done to attract end users and in particular first-time buyers. End users create stability and a maturity to the market which should be encouraged.

In the face of rising interest rates and property prices, help in the form of DLD fee reductions, and reduced loan-to-value requirements, for first-time buyers could be considered to bolster this segment of the market,” revealed the report.

KEY FINDINGS FROM THE REPORT:

  • Buyer demand increased by 23% versus H1 2021
  • Signed MOUs increased by 138% versus H1 2021
  • Townhouses saw the highest rise in listings by 141%, followed by apartments with an 18% increase, while villa listings saw a modest growth of 2%.
  • Investors made up 68% of all transactions versus end users at 32%
  • 31% of transactions were mortgage-backed purchases
  • Average rental price for apartments and townhouses climbed by 29% and 33% and villas rose by 64%
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