According to a new global survey commissioned by Arada, the UAE remains one of the world’s most attractive real estate investment destinations despite the recent regional conflicts.
Arada’s UAE Property Investment Index, which was carried out by US-based Penta Group, ranked the country as the top investment destination, with 56% of global investors expressing significant interest in the UAE’s property market, higher than any other market surveyed, and above the US (54%), the UK (41%), France (28%) and Spain (27%).
Conducted between 1 April to 23 April across 12 key markets, the survey of 689 established property investors is the first major research carried out into international buyer sentiment about the UAE real estate market since the Middle East conflict began on 28 February.
Some of the findings from Arada’s UAE Property Investment Index indicate that familiarity with opportunities in the UAE’s real estate sector, at 51%, is on a par with that of the UK and US, at 51% and 53%.
The UAE’s appeal is particularly high for investors in nearby markets with 91% of Indian investors, 92% of Egyptian investors and 85% of Saudi investors mentioning the country as a top three destination. With European investors, the UAE ranked the top choice outside the home country for French investors (63%), German investors (60%) and Swiss investors (57%).
Strong potential returns are seen as the number one investment driver on a global scale (38%), with Australian (57%), Spanish (56%) and British (41%) investors all ranking return potential as their first consideration.
Safety and stability are the most important factors for Chinese (65%) and German (58%) investors – and the UAE’s regulatory framework, political stability and transparent property laws cement it as one of the world’s most trusted environments for property investment.
The ease of purchase and ownership was quoted by 34% of respondents overall, increasing to 57% among Saudi investors and 41% among Egyptian investors – reflecting the UAE’s reputation as a investor-friendly market.
“These findings confirm what we have observed in our own sales performance – that despite recent headwinds international investors recognise the UAE’s structural advantages in regulatory maturity, track record of performance, and stable economic fundamentals.
“Continued adaptation has been key to the UAE’s rise as a global investment destination – whether it’s the pandemic or the financial crisis, this country has demonstrated time and again that it adjusts fast and better than anywhere else in the world.”
Ahmed Alkhoshaibi, Group CEO, Arada
The findings form a compelling picture of the UAE’s position in the global investment environment, showing a market that leads strongly on the factor’s investors care about most – returns, stability, tax efficiency and accessibility.
The publication of the research also follows as the UAE announces record infrastructure investments, including the AED 34bn Dubai Metro Gold Line, the world’s first commercial air taxi network, and the AED 6bn Fourth Federal Corridor to reduce congestion between Emirates and improve connectivity in the country.
As Arada’s project pipeline exceeds AED 130bn globally and their communities are curated to deliver the lifestyle appeal, quality and long-term value that international buyers demand, the research aligns both the strength of the UAE market and the company’s strategy of expanding into similarly high-potential markets including the UK and Australia.
