Business | Property
Investments in Dubai realty top Dh4.5b
Gulf investments into Dubai's property sector topped Dh4.5 billion in 2008, highlighting the emirate's continued popularity as a real estate investment choice, according to a report by Reidin.com, an online property tracker.
- BY Suzanne Fenton, Staff Reporter
- Published: 22:55 February 11, 2009
- Image Credit: Megan Hirons/Gulf News
- The Oldtown Burj Dubai complex along Shaikh Zayed Road. With markets such as the UK and the US being the worsthit in terms of real estate, foreign investors are looking at regulated markets with good returns, such as Dubai.
Dubai: Gulf investments into Dubai's property sector topped Dh4.5 billion in 2008, highlighting the emirate's continued popularity as a real estate investment choice, according to a report by Reidin.com, an online property tracker.
Saudi Arabia was at the top of the list of Gulf investments, having pumped more than Dh2 billion into the market. Kuwait invested more than Dh1 billion and Oman's investments reached Dh818 million.
Bahrainis invested Dh615 million and Qataris invested Dh117 million in to Dubai real estate.
Property prices in Dubai have dropped 25 per cent compared to its peak in September and it is hoped that the upcoming International Property Show (IPS) Dubai 2009 will continue to funnel investments in to the property sector, especially at a time when the prices are right.
Visitors and possible buyers at the IPS Dubai are likely to capitalise on lower prices.
The biggest drop in prices has been in the high end segment, such as Palm Jumeirah, which has been seeing drops of up to 40 per cent.
It is now possible to find villas for under Dh2 million in areas where, four months ago, it would have seemed impossible.
Amidst increasing job cuts, many trying to leave Dubai quickly are selling their properties for a fraction of the true price.
For example, one lucky investor has managed to bag a two-bedroom villa in the Springs for Dh1 million.
With markets such as the UK and the US being the worst-hit in term of real estate, foreign investors are looking further afield to regulated markets with good returns, such as Dubai.
"I think people are looking carefully at this market, as it's good, and people are keen to sell. Even if selling doesn't give such large profits now as before, they are happy to take a small profit just to sell their property," Rose-Marie Kilzi, leasing director at Great Properties, told Gulf News.
The downturn has also affected the mid-income bracket in the fourth quarter of 2008.
Many developers and agents have reported low sales activity so far this year. This is likely to continue unless sellers realise they have to lower their expectations in a stagnant market.
"The remarkable economic state of the GCC is driving growth of the region's real estate market, as well as the value of investments originating from this leading economy that is being funneled into the UAE market," Dawood Al Shezawi, managing director of Strategic Marketing and Exhibitions (SME), organisers of the IPS, said.
The IPS Dubai will also feature a pavilion dedicated to banks and financial institutions.
Dubai's Real Estate Regulatory Authority (Rera) will also be at the IPS.
Last year's event drew 35,000 visitors, up 50 per cent from 2007.
However, given the strained economy and a distinct lack of good loan to value ratios to be found, it remains to be seen how successful this year's IPS will be.
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