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Russian, Chinese and Indian Investors Are Drawn by Investment Opportunities in Dubai
2017 started off beautifully for Dubai and the United Arab Emirates in general. The market is showing signs of picking up and different parts of the economy are now kicking into high gear. Dubai’s property market has also made headlines as we enter 2017; experts believe it will only get better.
The latest reports suggest that investors from Russia, China and India are moving into the Dubai property market. Aside from the steady level of growth and recovering market, recent changes to regulations and the extra layer of protection offered to investors are creating the perfect climate for new investments in the region’s property market.
There are definite signs that the year 2017 will be an exciting one for both investors and the market as a whole. During the first two weeks of 2017, investors form Saudi Arabia, China and India poured a whopping AED 12 billion into the Dubai property market. The same trend is happening across the United Arab Emirates too.
The Dubai Land Department is projecting an increase in property investments by as much as 20% this year. These investments will not only pour into existing properties for sale, but also into the developments of new skyscrapers and apartment complexes in different parts of the city.
A high level of capital growth is the prominent reason why investors from these countries are returning to the UAE property market. Paired with the volatility of US dollar along with the new administration’s policies causing turmoil, the relatively steady value of property in the Middle East is considered a safe haven.
While China and India have been leading the charge into the Dubai property market, investors from Russia are beginning to take steps to invest in the region more. Most of the investors focus more on villas and luxury properties. There are a lot of interesting villas for sale in Dubai, especially properties designed for vacations, complete with luxury amenities and extra facilities.
These luxury properties are attracting investors from Russia for two main reasons. First, luxury properties – mainly villas and apartments – are sources of short-term revenue. They can be rented out for a good return.
The second reason is the capital gain also offered by luxury properties. Both luxury properties and commercial buildings have showed the most capital gain in recent months, causing investors to prefer these two types of investments when entering the Dubai property market.
Despite the recent changes and the influx of new investments into the region, there are still issues to deal with if the market is to grow optimally. For starters, more certainty and protection are needed. Investors want to know that they won’t have to deal with charges, fees and changing taxes in the future. The authority is making real efforts to solve this particular challenge.
The second challenge is sustainability. We’ve seen a big jump in the number of investments made in the first month of 2017 alone. To maintain the 20% projected growth the Dubai Land Department is aiming for, all stakeholders must work together in keeping the market balanced and healthy. It will be a very interesting 2017 nonetheless.
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