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RITIKA SHARMA / Emirates Business
Europe has always been an investment hotspot among the regional real estate investors. It is not only an easily accessible destination but also offers variety when it comes to the perfect ‘return on investment’ (ROI) oriented properties.
This trend has not only picked up in recent years, especially among UAE investors, in fact it is poised to become stronger, experts believe. A number of new prime developments are coming up in the key gateway cities of Europe due to strong economic growth, large expat student populations and major government transport infrastructure investment.
“Europe has been a hub for Middle East and North Africa (MENA) region investments. People like the continent (Europe) due to its accessibility, high living standards and most importantly nice weather. It is easier for investors to keep a tab on the market trends while sitting here and set expectations accordingly. The return on investment is always a primary focus and Europe has been maintaining a healthy one,†Farhan Shahid, an overseas property investment consultant who works with a Dubai-based real estate firm, told Emirates Business.
While Middle Eastern investors have increased their investment activity in some continental European markets, investment volumes are doing equally well in favoured investment destinations like London, Birmingham, Berlin, Dublin, Copenhagen, Helsinki and Oslo.
“The traditional choices for property investments for investors from UAE and MENA region remain the same. London has long been a hot-spot for investments from world over and this region is no exception. However due to various reasons, real estate developers have started eyeing neighbouring areas, especially Ireland and Scotland, for sustainable real estate investment,†he added.
Cementing United Kingdom’s position as a favourite MENA investment
destination, Chestertons MENA, the real estate company with its MENA headquarter in Dubai, is expanding its UK property investment reach beyond
the traditional boundaries, with the launch of a number of new prime
developments.
Chestertons recently reported that UAE investors alone accounted for 20 percent of the UK buy-to-let sales in 2015. “Presently, the rental yields in some central London zones are just three to four percent, but with healthy capital appreciation vicinities like Birmingham and Manchester, yields are almost double at six to seven percent. Due to the fact that developments in these areas are affordable, they clearly appeal to a larger bandwidth of the investors from this region,†said Amit Seth, Head of International Residential Development, Chestertons, MENA.
Interestingly, gauging the keen interest of UAE residents of investing capital in prime properties currently underway in various European cities, many leading overseas real estate developers have opened subsidiaries in Dubai and Abu Dhabi in the past few years.