UAE investors eye US, Australia, UK and Germany
UAE residents favouring real estate investments ahead of trading stocks, shares or bonds collectively
The US, UK, Australia, Singapore and Germany are the top five destinations for UAE residents looking to invest in property overseas, according to a YouGov survey commissioned by IP Global.
IP Global's survey indicated that the US topped the list, with 21% saying they would consider investing there. The UK with 19%, and Australia with 16%, were the second and third most popular choices respectively.
Singapore and Germany rounded out the top five, with 13% of respondents choosing these countries as preferred investment destinations.
The UAE was one of five countries where the survey was conducted, as part of IP Global’s research to identify investment trends in real estate across key markets. Hong Kong, Singapore, the UK, and South Africa were the other four countries.
When it comes to selecting assets to invest in, property in the UAE was the most popular asset class for UAE investors. More UAE residents currently invest in property (42%) than stocks, shares or bonds (30%), underlining the continued appeal of real estate as an asset class that provides stable returns.
The survey of more than 1000 UAE adults found that 41% of respondents identified tax as a reason that would prevent them from investing in property assets overseas.
33% of respondents said a lack of understanding of foreign laws in the country where property is located is also an investment obstacle.
Richard Bradstock, director and head of the Middle East at IP Global, said: “As the results show, the US has proved the most popular market for UAE potential investors. This shouldn’t come as a surprise as both Miami and Chicago offer potential for investors. Miami has achieved its second consecutive year of over 20% house price appreciation, and Chicago offers average yields of 7.9% according to Zillow.”
“The UK has always been a popular market to invest in, but outer London and regional cities such as Manchester and Birmingham, due to their robust economies and growth opportunities, have definitely seen increased attention from foreign investors. According to JLL, Manchester prices are forecast to grow 26.4% between the years 2016 to 2020, presenting incredible potential for investors.”