Renewed demand from domestic and overseas buyers seeking Dubai property assets is a sign of increasing interest in Dubai’s improving real estate market, said a property expert.

Strong interest in Emaar’s newly launched Lila and Yasmin properties at Arabian Ranches, Bahrain-based Ravi Pillai Group’s plans to invest $1.5 billion into two real estate projects in Business Bay and Downtown, and the $1.9 million investment by Chow Tai Food Endowment Industry Investment Development in serviced apartments, high-end residences and two five-star hotels at Dubai Pearl, illustrate the growing appetite for real estate investment from intuitional investors who have been largely absent since the market rebounded, according to Cluttons.

Faisal Durrani, the associate – residential and international research at Cluttons, said the launch of Yasmin demonstrates the domestic interest in established communities like Arabian Ranches, which feature completed infrastructure that are expanding in areas south of Dubai.
"Villa communities tend to be limited to a few hundred villas in order to create a sense of exclusivity and deliver on the promise of ‘gated communities’. We expect to see more such ‘bolt-on’ schemes launched, as developers expand prominent communities and focus on areas that are well established," he noted.

The recent report on buyer activity released by the Dubai Land Department highlights the appetite for real estate assets in Dubai that extends well beyond the UAE, with 162 nationalities committing to Dubai’s bricks and mortar during 2013, said the real estate consultancy in its report.

"Unsurprisingly, Indian nationals topped the list of the city’s most active buyers, with Dubai often viewed in the same league as London by this group," remarked Durrani.

"The relative geographic proximity to India and the large non-resident Indian population in the region are two further critical drivers for those looking to park their Rupees in Dubai’s real estate market. And now we’re seeing the demand base broadening from individuals to institutional players. Britons and Pakistani nationals rounded off the top three nationalities that purchased property in Dubai last year," he noted.

This is further evidenced in Cluttons International Private Capital Survey 2013/14 which was released late last year. The survey found that within the region, Dubai ranks ahead of other global real estate investment destinations.

Cluttons surveyed nine global locations across the Middle East and Asia-Pacific region and although London ranked as the go-to investment destination by the world’s wealthy, Dubai came in a close second, up from seventh place a year earlier.

Durrani pointed out that this leap up the league table underscored the impact of the economic rebound on Dubai’s appeal as an investment hot spot.

"We’re now seeing the results of the survey materialise in the form of high profile deals, which we expect to gather momentum. The World Expo 2020 win will go further to enhance this, with global investors expected to home in on the city ahead of the exhibition, catalysed by the exponential upturn in government backed infrastructure projects as Dubai readies itself for the mega event in six years’ time," he stated.

The High Net Worth Individuals (HNWI) from Muscat and Manama ranked Dubai ahead of London, with investors in both locations indicating a high likelihood of investing in the emirate during 2014.

For this group of Gulf-based HNWI, the lifestyle offered through second home ownership and the security offered by Dubai topped the list of investment drivers, said the expert.

"Strong capital value gains, attractive yields and the Emirate’s perceived safe haven status all emerged as the most important influencing factors when identifying Dubai as their top global investment pick," he added.-TradeArabia News Service