UK, Australia, Singapore and Germany other favoured destinations
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.
When asked where they would consider investing in property abroad, the US topped the list, with 21 per cent saying they would consider investing there. The UK with 19 per cent, and Australia with 16 per cent, were the second and third most popular choices respectively. Singapore and Germany rounded out the top five, with 13 per cent of respondents choosing these countries as preferred investment destinations.
When it comes to selecting assets to invest in, UAE property was the most popular asset class for UAE investors. More UAE residents currently invest in property (42 per cent) than stocks, shares or bonds (30 per cent), underlining the continued appeal of real estate as an asset class that provides stable returns.
The survey of more than 1,000 UAE adults found that 41 per cent of respondents identified tax as a reason that would prevent them from investing in property assets overseas. Meanwhile 33 per cent 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: "The US has proved the most popular market for UAE investors. Cities such as Miami and Chicago offer great investment potential, with property in the Windy City currently achieving average rental yields of over 7.5 per cent."
"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. Manchester prices are forecast to grow 26.4 per cent between 2016 and 2020, presenting an incredible opportunity for investors."
"We have also noticed a growing interest in Germany as UAE residents recognise the extraordinary value that real estate in cities such as Berlin present. For example, in 2015 the median property price increase in Berlin was 18.5 per cent."
"Although many UAE citizens are experienced investors, the results have revealed a large gap in international property investment understanding. There is still a lot of room for overseas property to increase in popularity as an asset class, especially to core 'safe haven' cities such as London as volatile global financial markets hold sway."
By Staff Report/Dubai
25 February 2016