UAE remains global contender for property

Dubai: The UAE is the third largest investor in property in the world, officials have said. According to Steve Williams, global adviser for Real Capital Analytics, the UAE, Qatar and Bahrain were surpassed only by the United Kingdom and the United States.

However, he added that the recent turmoil in the global financial markets has worsened the standing of the two western countries.

Despite the international storm and the turbulence experienced in the local financial market, real estate capital remained a beacon of hope with dozens of multi-million dollar development projects being launched during Cityscape.

During a debate on the property market in the region, Paul Devonshire, managing director of Pimerica Property Funds AG said: "The message is we continue to be active and we continue to do business."

The company was investing $55 billion (Dh202 billion) globally and had invested in Jebel Ali, Dubai, Abu Dhabi, Qatar, Kuwait and Saudi Arabia, regionally. Paul added that the greatest investment opportunities were in Abu Dhabi, Doha in Qatar, Saudi Arabia, Morocco and Dubai.

Optimistic locals

"We understand that there are opportunities here ... we expect yields of around 20 per cent. It keeps changing but the net yield has got to be above and beyond what we get in Western Europe," he said.

Local developers remained less cautious and more optimistic about the local market.

"Dubai is not seeing a hit. I don't think we will see a dip down," said Al Faraa Properties director for Natasha Gangaramani.

This was mainly due to oil and the boom in tourism in the country, she said. Al Faraa launched a 42-storey lifestyle tower in Maritime City during Cityscape. It was also marketing its stock in markets such as the US, Gangaramani said.

According to Faisal Ghadiyali, a B & M associate, the financial crunch was causing some discomfort due to financing becoming difficult but there were "good Islamic options" available, he said.

B & M launched the Le Riviera Sanctuary, a House of Riviera development, designed by Canadian architect Holford Associates.