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What do US investors look for in Dubai’s real estate sector?

Posted by Irish Manluctao on July 17, 2016
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Indians, Pakistanis and British investors have been the top investors in Dubai’s real estate market, but that does not mean investors of other nationalities do not find the city attractive. Dubai attracts investment from across the world, by investors of various nationalities and differing wealth. The host of business, trading and commercial opportunities Dubai offers draw thousands of workers and businessmen to the city each month, providing a healthy dose of demand to the realty market and making real estate a lucrative avenue for investors of all cadres.

US investors are far from taking the pole position in Dubai’s real investment chart, but the most advanced and modern city in all of Middle East and African region does make them consider parking their wealth in the profitable sector.

According to our data, average apartment rents in Dubai grew by 3% in January 2016 compared with December 2015 and a further 0.32% in February 2016. And compared with several global cities with super expensive real estate, the rental yields in Dubai stand far superior. Average rental yields for apartments in Dubai remained 6% in Q1 2016. But the number went as high as 8% in individual bed categories like studio units.

These impressive numbers naturally make US, and other investors, highly inclined towards Dubai’s real estate sector. Information compiled from our database regarding leads generated from the US exhibited some valuable insights.

Leads for rental properties originating in the US went up by 9% in Q1 2016. This could be a result of more and more US nationals moving to Dubai to benefit from its tax free income regime and state-of-the-art living facilities.

The major chunk of the rental leads, 81%, was taken up by leads for apartments. Ten percent of the leads went to villas up for hire, while office spaces generated 10% of all leads for rental properties. Bayut noted the leads for office spaces going up by 7.5% in Q1’16 compared to same leads in Q1’15.

We think that with the Expo 2020 drawing increasingly closer, many businesses are taking a shot at setting up offices in the city to benefit from the mega event. Even keeping the massive impetus of the upcoming expo aside, Dubai is a natural gateway to the Middle East and African region and by far the city with the most advanced and efficient infrastructure and communications network, which can go head to head with facilities in any of the world’s established cities.

US l;eads







So if you are an investor who can’t make up a mind about investment in Dubai, we suggest you make use of our daily write-ups about the UAE real estate market. I’m sure the facts we bring to light will help you make a sound and well-informed decision.