Investors expect Abu Dhabi properties to beat Dubai and Northern Emirates in price appreciation in the near term, according to a new survey of property market trends in the UAE.

The survey, conducted by DSL Exhibitions as a prelude to the company’s latest edition of R&R Local Property Show, has revealed significant differences in the perceptions and attitudes of property investors who choose between the three regions of the UAE: Abu Dhabi, Dubai and Northern Emirates (Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah and Fujairah).

The show is due to be held at the Sheikh Zayed Center for Conferences & Exhibitions (Ajman University of Science and Technology, Ajman) from June 19-21.

“While it is unfair to compare the real estate markets of Abu Dhabi, Dubai and Northern Emirates as they are all at different stages of development, we thought it was important to compare the attitudes of those who have invested in these different regions of the UAE, so we as industry professionals could better understand investors’ motivations and their needs,” said Tessa Morris, marketing director, DSL Exhibitions.

A significant difference was revealed between the motivations of those who have invested in property in the Abu Dhabi, Dubai and the Northern Emirates of the UAE, according to the survey. While 67 per cent of those who have invested in Abu Dhabi have done so based on expectation of financial returns, 68 per cent of Dubai investors and 79 per cent of Northern Emirates investors have invested with a view to living in those properties.

“It seems that Abu Dhabi is now attracting a significant amount of investor funds directed at financial speculation, while Northern Emirates has the highest proportion of investors who wish to live in their properties,” said Tessa. “However, this must not be taken to mean that investors in Northern Emirates do not factor price appreciation in their decision to buy.”

Abu Dhabi emerged as the region where investors from across the country expect the highest price appreciation happening in the near term, with almost half the respondents choosing it over both Dubai and Northern Emirates.

However, if we are to believe industry players operating in Northern Emirates, this region is only now coming into its own. Khurram Burney of Estate 400 Real Estate – an exhibitor at the upcoming R&R Local Property Show – said that “returns on investments in the Northern Emirates are as high as 30 per cent -40 per cent in about six months.”

Jawad Chapal, exectuve director of Chapal World – another exhibitor at the show – also felt that price appreciation in the Northern Emirates is accelerating. 'The continued positive and enthusiastic response from property buyers and investors to our projects in Ajman clearly predicts healthy market growth,” he said.

The eagerly anticipated launch of Ajman's own bank and the announcement of Ajman airport are definite growth indicators as well.”

Northern Emirates, by far, garnered the most votes as the investment destination offering the best value for money, cutting across geographical lines.

Seconding the finding, Aftab Hemani, managing Director of Cobalt Real Estate – also exhibiting at the R&R Local Property Show – said: “Land prices are under Dh100 per sq ft on the Emirates Road in Ajman, though they are rising fast. However, prices in Northern Emirates are far lower than in Abu Dhabi and Dubai. You can today get the same quality in Ajman for Dh450 per sq ft as you would expect for Dh1000 per square ft in Dubai or Abu Dhabi. Confirming the sentiment, Chapal said: “A large number of investors who were, till recently, unable to buy in Dubai can now comfortably afford to invest in Northern Emirates.”

Salman Soofi of Brooks Real Estate, said: “The freehold market of Dubai was only targeting a higher net worth group - more of investors than the actual end users. Northern Emirates a