real estate investors keen on potential growth

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Roots Land Real Estate is your property partner in the U.A.E. We are committed to assisting you with the entire process of purchasing or selling your desired property. Our experience in Dubai and Abu Dhabi’s property markets has provided us with invaluable insight that is largely beneficial to investors.Visit our website: http://www.rootsland.com/

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  • www.roostland.com | Dubai Real Estate Broker Roots Land Real Estate

    Real Estate Investors Keen on

    Potential Growth Knight Frank

  • www.roostland.com | Dubai Real Estate Broker Roots Land Real Estate

    "Dubai is the ultimate case study for anybody who wants to comprehend the profound

    influene that the gloalisation of wealth eerts on the worlds propert markets." Liam Baily, Residential Research, Knight Frank - Financial Times 16/09/2015

    Over the past decade, the emirate has been on a real estate roller-coaster ride of boom,

    crash and recovery. Property values halved between 2008 and 2010, but then rose

    phoenix-like from the desert to regain most of their losses by 2014.

    The rallying prices of years 2013 and 2014 in Dubai have set off the alarm so authorities

    had to react to prevent a market boom-and-rash le. Duais arket regulators, wielding mortgage caps and a doubling of transaction fees, stepped in to reduce

    speculation.

    This combined with deteriorating oil prices, currency fluctuations, a strong US dollar, to

    which the United Arab Emirates (UAE) dirham is pegged and a series of economic and

    political failures in different parts of world, means lower levels of demand from most

    regional and international group of buyers looking to purchase properties in Dubai.

    Add an excess of new-build supply into this mix, and the net impact has been a 12 per

    cent fall in mainstream property prices over the 12 months to June 2015.

  • www.roostland.com | Dubai Real Estate Broker Roots Land Real Estate

    Nevertheless, falling prices are not totally bad news. With the government stepping in

    to curb speculative activity through tightening mortgage regulations and capping price

    increments, it is evident that lessons has been learnt from the 2008 downturn and the

    market is heading steadily to be more mature and better controlled.

    More interestingly, with price falls continuing to outpace rental value declines, initial

    yields are rising. Reaching more than 7% in rental yields in the mainstream property

    segment, Dubai still stands tall among real estate capitals in the world for investor

    seeking income generating properties. Never to forget that returns here are always tax

    free.

    In addition, the magnitude of decline in prime residential prices (-4.5%) in the year to

    June 2015 was smaller compared to the mainstream segment.

    Lookig ito the its su-markets, the picture is a bit more positive as well. In-demand areas are mostly in the prime segment including villas, townhouses and

    apartments in the Palm, Emirates Hills, Dubai Marina and Downtown for example. Even

    during the 2008 downturn, prime properties saw lower levels of declines compared to

    less estalished areas, oted Diaa Noufal, MENA Research at Knight Frank Dubai office.

    Regional competition

    Early enough, regional markets have picked up the sparkle of Dubai speedy

    development in a way to compete with the emirate and gain a share of the inbound

    flow of global private wealth.

    Qatar has legalized foreign ownership as early as 2004, although restricted to a few

    specific areas. This was reactivated when the first waves of freehold properties started

    to pour in the market in The Pearl waterfront development. Demand has been rising,

    albeit with a slowdown this year following the oil price crash and regional instability.

    Buyers tend to be residents of countries within the Gulf Cooperation Council, although

    the number of European buyers is rising.

    Demand for Oman property from across the Middle East and from India and Pakistan

    has risen in recent years. This is partly due to the potential for some buyers to secure

    residency following purchase, but also from relatively strong annual investment returns

    of about 6 per cent.

  • www.roostland.com | Dubai Real Estate Broker Roots Land Real Estate

    For Saudi Arabia, the biggest economy in the region and the largest oil reservoir in the

    world, the Dubai market has been an investment opportunity rather than a transferable

    experience. However, property market in Saudi has been seen evolving rapidly over the

    last decade with mega scale projects by Dubai-experienced developers such as Emaar

    and Limitless.

    Abu Dhabi is where the Dubai model is most evident, albeit on a smaller scale.

    Transaction volumes there have fallen in the past year, but prices have been relatively

    resilient, rising by about 5 per cent in the 12 months to June 2015. As with Dubai, the

    rules on mortgage caps also apply to reduce the risk of bumpy cycles.

    Outlook

    Despite the rise of alternative regional markets for international buyers, Dubai and Abu

    Dhabi will remain the focus for most activity in the region. Investors, developers and

    governments here, all alike, are counting on the potential economic growth in both

    cities- led by a forecasted 20% increase in the UAE population by 2030.

    Economic positive prospective of Dubai is no doubt deeply founded. Its airport already

    serves 70m travellers a year with capacity set to rise to 200m. The port at Jebel Ali is

    epeted to eoe the worlds largest i the et 15 ears, refletig Duais emergee as Chias logistial hu for the Middle East ad Afria.

    Having in mind the Expo 2020 in Dubai and the massive economic activity linked to it,

    demand is seen gathering momentum in a steady pace over the next seven years and

    beyond.

    A more mature market, a better investment return, and a highly connected city all point

    to a positive future of the property sector in Dubai.

    About Roots Land Real Estate:

    Roots Land Real Estate is your property partner in the U.A.E. We are committed to

    assisting you with the entire process of purchasing or selling your desired property. Our

    experience in Dubai and Abu Dhabi?s property markets has provided us with invaluable

    insight that is largely beneficial to investors.

    Learn more about http://www.rootsland.com/