Good News for Dubai Property Owners- Dubai the preferred property market for Mena investors

property market dubai, buy property in dubai, invest in dubai, rent in dubai, dubai real estate,buy  in dubaiOver the past two years, Dubai has clearly been the preferred investment market in the Middle East region. The recovery in prices and rental values, stable political situation, improved economic fundamentals, and better transparency compared to other regional markets are all fundamental reasons as to why the emirate has become such popular investment turf. 

The property market's turnaround has been boosted by investors from the Middle East and South Asia looking for a safe haven to park their money and the emirates’ property market has been further enhanced by the greater range of investment grade real estate relative to other markets in the region. 

A recent study carried out by Jones Lang LaSalle stated that the market's recovery has been very selective and focused on only the best quality projects, locations and developers. Overconfidence is seen as biggest danger to Dubai and investors have learnt from their mistakes in the 2008 – 2009 recession.  

Saudi Arabia was ranked as the second most favourable market by respondents, as its property sector benefits from a large local population, high energy prices and a stable political structure which has insulated the market from social and political unrest.

Abu Dhabi was ranked third, but the report said the emirate is at a less attractive stage of its cycle for investors than Dubai, with prices and rents continuing their downward trend in most sectors, the report noted. The Abu Dhabi market is further hindered by the lack of investment grade properties and the limited number of locations where GCC and foreign investors are allowed to buy.

The report also noted that Middle Eastern investors remain major players on the global real estate stage, purchasing a total of $5.3bn of real estate outside of the region during the first 9 months of 2012 (more than in the entire year 2011).

London is the primary destination of choice for Middle Eastern investors, who have purchased a total of $2.3bn in the UK over the first 9 months of 2012, more than twice the $1.2bn invested during the same period in 2011.

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