British investors pumped £1.9bn into Dubai’s property sector last year, the latest statistics from the Dubai Land Department show.
Property investments have almost doubled in the last three years, making Brits the second largest group of investors in the Dubai property market, beaten only by Indians.
Such is the interest in the Dubai real estate market that a Dubai property show is being hosted in London next month for those keen to find out more.
"Due to the high demand from British investors in Dubai’s real estate, we are taking from Dubai Property Show in London the perfect opportunity to introduce the enormous opportunities offered by our real estate market to potential investors, and inform them with the many advantages that we provide, and showcasing the advanced infrastructure of Dubai, the high return on investment, the regulations and legislations that guarantees the rights of all parties,” said He Sultan Butti Bin Mejren, director general at the Dubai Land Department.
According to Sultan Al Suwaidi, partner at Sumansa Exhibitions, the company bringing in Dubai Property Show to London from 13th-15th May, 2016 at Olympia West, the emirate’s tax-free status is one of the biggest attractions, as it means that there is no tax to pay when it comes to rental income and capital gains.
In addition, foreign buyers have, since 2002, been permitted to acquire property with freehold rights. Plans on the horizon, such as hosting the World Expo in 2020, also make it an attractive destination for international property investors.
Like any emerging property market, there are high rental returns achievable in Dubai, while property prices across many parts of the emirate are rising, as the housing market remains in recovery mode.
Al Suwaidi said: “Dubai is a dynamic global investment hub and has always had attraction for international investors. Dubai property market continues to mature and stabilise as a result of strategically implemented government regulations, returns for both small and large apartments in Dubai are delivering between 7-10% yield which is higher than Hong Kong, Singapore and London."
According to JLL, residential prices in Dubai increased by 56% over the past two years, with rents up an average of 41%. Property consultant Knight Frank agrees, noting that prices are now not far from their peak levels in 2008. Yield returns reached 7.42% in Dubai’s mainstream market in July 2015.
“Many British investing in Dubai properties are seeking capital appreciation more than using them as primary or secondary homes,” added Al Suwaidi. “In terms of preferred areas of investments majority of UK nationals have bought properties in Dubai Marina area followed by other locations such as Palm Jumeirah, Jumeirah Lake Towers and Downtown Dubai.”