Emiratis buying new real estate assets more regularly, says study
DUBAI, May 31, 2018
UAE-based investors are buying new assets more regularly, with 32 per cent looking to make a new investment every quarter, said a recent survey by Select Property Group, a leading British developer, retailer and operator.
The new research commissioned by Select Property Group reveals the current investment trends and attitudes in the GCC.
The YouGov study, undertaken by individuals across the region who currently or have previously engaged in investing, explored themes including: what assets those in the GCC had previously invested in; what future investments appeal most and, in specific relation to property investment, how popular overseas assets are.
The findings showed that, as a whole, the GCC exhibits solid knowledge of the investment landscape, with almost two-thirds (63 per cent) of investors describing themselves as having some or a strong level of investment knowledge.
In terms of assets, real estate is undoubtedly the most popular across the region. 75 per cent of investors in the GCC have, at some stage, invested in property in their home country. Furthermore, the appeal of overseas property is growing strongly, with 60 per cent of respondents considering an international real estate investment in the future.
According to Select Group, the investor confidence is only further evidenced by the frequency in which investments are being made.
While the results found that 71 per cent of investors based in the GCC look to make a new investment every six months or less, UAE-based respondents were found to be the most interested in making new investments of all countries surveyed. Significantly, 32 percent look to make a new investment at least every quarter.
Respondents were asked to consider their previous and potential future investments in bonds, stocks and real estate – in their home country or overseas – as well as mutual funds, bank products, gold and precious metals, cryptocurrency and fine art.
Across every category, respondents demonstrated a desire to increase their level of investment in the coming years, the survey revealed.
Surprisingly, 5 per cent of respondents based in Saudi Arabia declared they have already spent over $500,000 on cryptocurrency despite its relative infancy as an asset, but investment levels collectively still trail far behind more traditional products, such as real estate.
"The results show that investors in this region are highly motivated and it’s interesting to see the mix of key investment choices amongst the varying demographics," remarked Adam Price, the managing director at Select Property Group.
"It’s promising to see that GCC residents are also inclined to make regular investments, constantly keeping an eye on the market and looking to capitalise on the latest opportunities," stated Price.
"The study also explored investor motivations in the past and future. Though investors remain active, the motivators behind their choices are changing, with a clear shift away from a portfolio serving as an income generator, and moving toward long-term capital growth for men, whilst women are seeking financial security from their investments," he added.
Specifically, in the UAE, almost the same number wanted to generate a regular income or long-term capital growth from their previous investments but over half (56 per cent) said their future investment motives will change, with long-term capital growth likely to be the more important motivator going forward.
"“It’s interesting to watch the shift in the market, both in terms of investment preferences, but also in the motivators driving individuals to invest," remarked Price.
"As real estate serves as a promising long-term investment, increased interest in the sector is a natural occurrence. Purchasers of Select’s UK portfolio, for example, are experiencing both high returns early on and strong growth over the construction period, then seeking to enhance this further in the future through rental returns and capital appreciation," he added.-TradeArabia News Service