Saeed Hashmi, Head of Valuation and Advisory at Landmark Advisory
Three months into the new year and we have all been witness to the increase in construction work on previously stalled residential projects. And, although some delays are likely, it has been said that no major cancellations are expected to happen to the projects targeted for completion this year. Also instilling confidence in Dubai’s economic status is the survey recently released by The Foreign Investment Office of Dubai Economic Department stating that more than 80% of investors are planning to maintain or increase their investment in Dubai.
Throughout the start of 2011, Landmark Properties – one of the largest property brokerage agencies in the UAE – has also witnessed an increase in interest, specifically from overseas investors seeking property within Dubai. Michael Michael, Director of Sales at Landmark Properties, explains, “From the end of last year onwards, we have seen a definite increase in interest from overseas clients”. Michael continues, “Such investors are mainly from countries within the GCC or Eastern Europe, indicating a growing sentiment that Dubai’s property market is now offering investors greater value for money”.
“Although the market is still relatively immature in terms of large institutional overseas investors, Dubai now seems to be back on the agenda for many parties”, states Saeed Hashmi, Head of Valuation and Advisory at Landmark Advisory. According to Hashmi, the type of property overseas clients are looking for varies, with many wanting to invest heavily across various property sectors.
Hashmi also confirms that, “in comparison to mature western markets, investment property in Dubai attracts much higher equivalent yields, i.e. a 9%+ for prime property, albeit under differing terms,” suggesting that the significant yield margin and long term growth prospect in certain sectors is re-attracting healthy investment appeal.
For the foreseeable future, Landmark Advisory predicts that industrial property will be favoured among such clients – due to the amount of quality stock in Dubai, coupled with the dynamics of the Emirate’s economy and strong history within trade and industry segments.
Furthermore, Hashmi also states, “This overseas trend is spilling into the residential market too, as investors are looking to pick up quality products at historically affordable prices. Even comparing residential prices in Dubai with other international markets, Dubai is now offering more for less”.