Dubai’s demographic investors
It is a well-known fact that Dubai is continuing to attract a large pool of global investors to the property market. Below, we will look at Dubai’s demographic investors by nationality and the major areas where they buy properties.
Dubai is becoming more and more attractive to buyers when it comes to real estate. Affluent investors who previously preferred to invest in the European or American real estate market are now regular buyers on the Dubai market. Many incentives are attracting a flux of investors to the city. It’s more than the luxury aspect or tax-free platform for capital gains.
In fact, Dubai has one of the highest returns on investment globally, compared to other international metropolises. According to Global Property Guide, the average ROI for properties in Dubai per year is 5.19%, compared to New York or London, where is 2.9% or 2.7%.
Emerging as a top investment destination, Dubai is customizing its real estate portfolio according to global clientele demands and preferences. Furthermore, Dubai’s equidistance between Europe and Asia places the city at a great advantage in terms of attracting a dynamic, diverse pool of investors.
Customer mix by area – Q3 2021
Reports indicate a large mixture of nationalities investing in top destinations in Dubai, as per area interest. For example, top buyers in Dubai Creek Harbour are Indian nationals. They favor the area for its uncompromising quality in properties at the heart of a waterfront community. Dubai Creek Harbour is a state-of-the-art innovative development targeting families with kids and working professionals, due to its close proximity to business hubs across the city. In the second position for top nationalities buying real estate in top Dubai areas, are the Chinese nationals who stay loyal to Downtown and invest at large in this district.
The luxurious skyscrapers of Downtown are set amidst the legendary surroundings of The Opera District and the captivating Dubai Fountain. For sure, the charm of living in Downtown Dubai continues to grow as the place exudes the epitome of urban luxury. Therefore, choosing to reside here guarantees the enjoyment of a comfortable, modern, and opulent lifestyle.
Top areas as chosen by investors
The customer mix further indicates that British investors choose Dubai Hills Estate for buying in Dubai, ranking third in the top ten. Spanning across 11 million square meters, Dubai Hills will accommodate various apartments, over 200 villas, and exclusive mansions. Moreover, you can find available properties starting at AED 1,400,000 and reaching over AED 15,000,000. Various districts at Dubai Hills include Golf Place, Hills View, or Hills Grove. Emaar Beachfront area is most popular with Iranian nationals while Emirati investors prefer Emaar’s The Valley.
Russians are also coming in strong in the top ten nationalities investing in top areas for properties. Palm Jumeirah and Emaar South are the top locations where the Russians prefer to invest their money in real estate.
Additionally, there has been a strong interest and high expenditure generated by Pakistani, Canadians, and Dominican Republic nationals at Arabian Ranches. Furthermore, this is a hugely popular area, continuing to generate massive sales for the villa/townhouse segment.
Arabian Ranches III is considered one of the best investment opportunities for off-plan property in Dubai. Located in Dubailand, it is an extension of Arabian Ranches and Arabian Ranches II, launched by Emaar back in 2004. Furthermore, Residences here are planned in many sub-communities and enjoy the best leisure and sports amenities available.
Indian and British are top Investors
Data statistics clearly show a massive rise in transactions concluded by Indians and British nationals. They continue to buy property in Dubai. Dubai Land Department reports that 11,280 investors have invested AED 21.8 billion in 12,890 properties across various districts in Dubai. This was only up to the end of Q2 2021. The surge has also been accelerated by the emergence of Expo 2020 which kicked off in October 2021 and which has registered over 2.5 million visitors in less than six weeks.
The attractive payment plans and developers’ incentives for various off-plan projects only boost the enthusiasm of international investors. As already mentioned, Indians are top of the chart for foreign nationals buying property in Dubai. Statistics show they transacted 4,322 investments to the value of AED 6.07 billion. British nationals came in second with 1223 investments to the value of AED 2.99 billion and France scored third place. They invested up to AED 1.3 billion with the purchase of 934 properties.
Furthermore, 520 Russian investors took to the market this year transacting 582 properties to the value of AED 1.18 billion. Similarly, Iranian and Canadian nationals generated AED 1.04 billion profit value for the property market. They invested in over 500 properties across Dubai. Same DLD reports indicate that in the case of GCC nationals, Emiratis are leading the way for investments in Dubai property in 2021. They lead with 2,688 investments. The total value amounts to AED 4,83 billion. Furthermore, Saudi investors also come in close with 447 investments.
The overall investments in the Dubai property market are showing a 44% increase in Q1 of 2021. The total value is AED 36 billion. The month of May alone is indicating 6,021 real estate transactions worth 21.8 billion, according to Dubai Land Department.
Why Dubai’s demographic investors choose this city
As we stated before, there are many reasons why buyers choose Dubai for property investments. Apart from the alluring ambiance of luxury and safety surrounding the city, investors can see endless possibilities for long-term capital gain.
For example, the lower property price per square foot in Dubai compared to Europe is an incentive to invest with zero property tax. No doubt, this is reason enough and beyond. The average price for a home in Dubai ranks at around $270,000, compared to $1.2 million in Hong Kong or Munich. The reports were released by Alliance Business Advisors, a reliable property consulting firm. The company is keeping a firm account of the market’s pulse.