Investors from Kuwait now account for nearly 60% of all properties purchased by GCC nationals in the emirate of Dubai, according to new figures from the UAE Ministry of Finance.
Luxury Dubai-based developer DAMAC Properties responded to the figures, by confirming it has observed an increase in inquiries from Gulf investors, particularly Kuwaiti nationals, over the past six months.
“Dubai is only an hour and a half flight from Kuwait, which makes it an ideal location for a second home, or even a primary home for some Kuwaitis. Dubai has always been popular with Kuwaiti investors, but given the price and the quality of properties now available on the market, Dubai offers phenomenal value for money” said Niall Mc Loughlin, Senior Vice President of DAMAC Properties.
While affordability is likely the most significant factor stimulating demand, the revival of the property market is also being underpinned by a more favourable regulatory environment. The implementation of a raft of new regulations, including Dubai’s new Strata Law which favours home owners, has also contributed to renewed buyer confidence in the property sector.
“Dubai’s real estate market is now more stable and sustainable. Gulf investors are flooding back into Dubai and the broader UAE’s property sectors on signs that the market’s bottomed out and is already well advanced with the recovery phase” Mc Loughlin added.
Investor confidence in the UAE is now at its highest level in 12 months, according to the latest FPI investor sentiment survey. Investors are upbeat about the outlook for the UAE economy, with almost 60% of investors predicting that investment markets will improve over the next six months.
The surging investor optimism in the Gulf Region is supported by the positive economic outlook released by the IMF, which upgraded its 2011 economic growth forecast for GCC countries to 7.8%.
“Right now, the Gulf region is outperforming most major developed economies around the world. Investors are positive about the future, and that sentiment is resonating in the property market. Real estate is a popular asset class for investors in this region, and a rebound in investor sentiment tends to manifest in the property sector,” Mc Loughlin commented.
DAMAC Properties believes that investors will always be attracted to all of the positive attributes that Dubai has to offer - world-class infrastructure; strategic location; established tourist destinations, proven business centres; a highly skilled expat workforce; and most importantly strong and stable government leadership.
With 1,329 units to be delivered before the end of the year, and another 9,849 under construction across the region, DAMAC Properties continues to be a major contributor to Dubai’s real estate revival. As it continues to extend its portfolio of luxury products, which offer significant investment opportunities, DAMAC Properties will be an enduring fixture in the Dubai landscape, and Dubai itself will continue to be a major draw for Gulf investors.