Article written by Jessica Combes in CPI financial – Tuesday 09, January 2018.
The annual YouGov survey conducted by IP Global, a leading full-service property investment company, has confirmed that property remains the preferred investment asset by UAE residents, with 40 per cent of residents planning to invest in property in the UAE and 18 per cent planning to do so overseas in the next year.
In a biannual study taken by 1000 people, when choosing which asset type to purchase, property ranked above stocks, shares or bonds (27 per cent), highlighting the continuous appeal of real estate, possibly due to the stable, reliable returns it offers. Despite the recent political global events, the latest YouGov study also showed a seven per cent increase in appetite by UAE residents in the last six months for property investment.
When UAE residents were asked where they would consider purchasing property abroad, Canada (20 per cent) and the USA (20 per cent) were the most popular countries selected from the list. The UK with 15 per cent, plus Germany and Australia with 12 per cent each completed the top five preferred investment destinations.
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Within Europe, Berlin’s recent economic boom and population influx mean that the German capital is being viewed as a promising destination for property investment. With a current 40 per cent housing deficit, Berlin’s rental market is strong, with between 5.1 per cent and 6.9 per cent rental growth in the past three years, and approximately 6 per cent in 2016 (5). On a whole, Germany is the perfect investment opportunity for UAE residents, as overseas investors do not have to pay any capital gains tax for properties owned for more than ten years. Overall, we are delighted that the YouGov study has shown the increased appetite of the UAE residents for property investment and in the current market, with a weak pound making it cheaper for USD pegged investors to buy property abroad, real estate is calling out: the time is now,” said Bradstock.