USA, UK and Australia top spots for UAE investors

Abu Dhabi / Emirates Business

The USA, 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, a leading full-service property
investment company.
When asked where they would consider investing in property abroad, the US topped the list, with 21% saying they would consider investing there. The UK with 19%, and Australia with 16%, were the second and third most popular choices respectively. Singapore and
Germany rounded out the top five, with 13% of respondents choosing these countries as preferred investment
destinations.
The UAE was one of five countries where the survey was conducted, as part of IP Global’s research to identify investment trends in real estate across key markets. Hong Kong, Singapore, the UK, and South Africa were the other four countries. The results across the five markets highlighted the following trends:
• The US is among the top investment destinations for respondents outside of Asia.
• Germany is in the top five choices for investors in both the UK and UAE.
• Australia is amongst the top three investment markets for real estate in all five countries.
When it comes to selecting assets to invest in, property in the UAE was the most popular asset class for UAE investors. More UAE residents currently invest in property (42%) than stocks, shares or bonds (30%), underlining the continued appeal of real estate as an asset class that provides stable returns.
The survey of more than 1000 UAE adults found that 41% of respondents identified tax as a reason that would prevent them from investing in property assets overseas. Meanwhile 33% 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: “As the results show, the USA 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%.”
“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% between 2016 and 2020, presenting an incredible opportunity for investors.”
“At IP Global, 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%.”
“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.”
This year’s results are consistent with a YouGov survey conducted in 2014 which found London, New York and Sydney to be the most popular cities to invest in outside of the UAE.