Thursday 30 May 2024

Abu Dhabi 'lucrative alternative for Mideast investors'

ABU DHABI, November 30, 2018

Abu Dhabi's property market is fast emerging as a lucrative alternative to Dubai for the regional investors, thanks to the emirate's attractive 7 per cent yield and also its strong economic footings (having 60 per cent of country's GDP), said experts, while speaking at a key industry event, Wealth Arabia Summit, in Abu Dhabi.

 It is the only platform in the region built from the ground up that specifically caters to high net-worth individuals (HNWIs) and their most trusted representatives in wealth management, said the organisers.

Leading industry experts including William Mullally, the editor of Wealth Arabia; Murray Strang, the head of Dubai Management of property consultancy Cluttons, Mustafa Kheriba, the chief operating officer, Abu Dhabi Financial Group, Racha Alkhawaja, the group chief distribution and development officer of Equitativa Group, and Luann Chamayne Parker, the director of business development at Imkan Properties were the top speakers at the summit.

The major real estate trends that the summit addressed included best practices in solving issues arising from cross-border real estate transactions; exploring trends and benefits of cross-border real estate transactions and unique and exciting case studies for HNWIs to learn from.
Chamayne Parker said the UAE capital had turned a major attraction for Midlle East investors mainly due to the attractive 7 per cent yield on real estate investment and a better value proposition.

"The emirate has strong economic footings having 60 per cent of GDP of the entire UAE, and holds the world’s second largest sovereign wealth fund," she stated.

The very top of Abu Dhabi’s residential sales market has been relatively positive, and is showing signs of stabilising. Sea facing villas on Saadiyat Island for instance, which remain the most expensive residential property type in the UAE capital, have seen no movement in prices for two consecutive quarters, said the experts.

This trend is likely to help tempt buyers back into the market especially as we feel the stability is likely to persist, they added.
“For investing outside the UAE, London is the most sought-after choice for UAE and Middle East investors due to London’s stable economic, political and social systems,” said Strang.
The Central London office market is currently undergoing a period of significant change, but with big change comes great opportunity. For UAE investors, Shariah compliant real estate investment attracts due to its clarity and interest," he stated.
In her comments, Alkhawaja said: "Real estate by nature is a long term plan. Currently slow market is good time for buyers to make future investments that passes on to the children."

Real Estate Investment Trust (REIT), she stated, were important for institutional investors with long term plans.

Summing up the session, Mullally said: “Thankfully, in 2019, there is no ‘get rich quick’ scheme to be had -nothing to give more calm heads the oft misleading fear of missing out and point them in a rash direction."

"What we’re left with is the sort of landscape which is difficult to navigate as an inexperienced investor, but on which the greatest thrive," he added.-TradeArabia News Service

Tags: abu dhabi | Middle East | investors | alternative | REIT |

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