dubai (pti): the real estate sector in
dubai is being driven largely by foreign investment, with individuals
and companies from other countries comprising 60-70 per cent of the
buyers of freehold units.
two out of three of all the new
freehold properties in the emirate are bought by foreign companies or
individuals who live outside the country, says a study, which also
reveals that property developers in dubai have usd 100 billion worth of
new development projects in hand.
mag group property development, which
is looking to grow its portfolio of new property projects to more than
dhs 10 billion (usd 2.72 billion) by 2012, says final home owners
currently account for just 30 per cent of the market and only 5 per
cent of them are uae nationals.
"reason for this phenomenon is
investing in property in the uae is seen as safe and rewarding and
currently better than investing in bonds or stocks," said mag group ceo
mohammed nimer.
"in spite of numerous challenges, such
as rising costs and shortage of contractors, the real estate sector in
the uae is still one of the most important investment areas in the
country. the return on the investment can reach as high as 40 per cent,
an unbeatable figure," he added.
nimer said foreign investment by both
developers and buyers, which represents 60-70 per cent of investment in
freehold property, remains vital for the continued growth of the real
estate sector.
investors from pakistan, india and
china as well as other emerging markets such as south korea and brazil
are increasingly showing interest in tapping lucrative opportunities in
the uae.
