Survey finds 40% of residents plan to buy UAE property in 2018
The annual YouGov survey, conducted by IP Global, found that property remains the preferred investment asset of UAE residents
Up to 40% of the UAE's residents plan to invest in property within the country this year, a recently released study has revealed.
The annual YouGov survey, conducted by IP Global, found that property remains the preferred investment asset of UAE residents.
IP Global, a property investment company, found that 18% of the UAE's residents plan to invest overseas over the next year.
YouGov's study also showed a 7% increase in appetite for property investment by UAE residents in the last six months.
Among the top international investment hubs that UAE residents said they would consider included Canada (20%), the US (20%), and the UK (15%), in addition to Germany and Australia.
Additionally, the survey showed that a similar percentage of men and women are keen to purchase assets.
For instance, in 2018, 41% of women said they were considering buying property in their home country, in comparison to 39% of men.
Commenting on the YouGov study's findings, Richard Bradstock, director and head of the Middle East region at IP Global, said: "The results of our second YouGov study are extremely positive and indicate that more and more UAE residents are looking to purchase property in the next 12 months.
"On a global level, property continues to offer excellent prospects for capital growth. For example, North America continues to be an attractive market for the UAE residents, due to the impressive returns it offers investors, as shown by Chicago which has experienced an 36% increase in house prices in the last five years while rental yields have increased 10% between 2016-2017.
"Closer to home, as the most mature market in Europe, the UK has always been popular with overseas investors. London, due to its chronic housing deficit and the government’s increased spending on infrastructure, remains a solid investment choice.
"Within Europe, Berlin’s recent economic boom and population influx mean that the German capital is being viewed as a promising destination for property investment. With a current 40% housing deficit, Berlin’s rental market is strong.
"On a whole, Germany is the perfect investment opportunity for UAE residents, as overseas investors do not have to pay any capital gains tax for properties owned for more than 10 years," Bradstock explained.
"Overall, we are delighted that the YouGov study has shown the increased appetite of the UAE residents for property investment and in the current market, with a weak pound making it cheaper for USD pegged investors to buy property abroad, real estate is calling out – the time is now."