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UAE property investment reaches new heights
Jun 26, 2012
Mr Waterfield of Friends Provident International expressed concern over the amount of UAE investors not seeking professional financial advice.
UAE property investment preference stands at its highest ever level.
The preference for property investment now stands at a score of 17 rising dramatically from -2 in Q2 2010, reported the latest Friends Provident International (FPI) Investors Attitudes Report.
After opening the doors to foreign investment and granting freehold ownership rights to foreigners in 2002, Dubai has seen its real estate prices rocket. However, house prices in Dubai were severely affected by the financial crisis when prices declined by an average of 60 per cent.
The report highlighted that almost half of investors fail to seek appropriate professional financial advice from a UAE based adviser or broker when planning their investments.
Matthew Waterfield, general manager, Middle East & Africa at Friends Provident International said: “It is pleasing to see the improvement in the preference for investing property – both in theory and in practice. This coupled with the reduced number of respondents choosing to sit out on investing, and the improved sentiment towards the current and future markets, is a clear indication of an overall improvement in investor confidence in the UAE market.”
Oxford Business Group (OBG) said that Dubai’s property crash was over, with the residential sector having “posted solid growth over the past few months,” reported Arabian Business.
OBG regional editor, Oliver Cook told them: “other areas of the sector are also showing signs that recent declines are beginning to reverse.”
The Friends Investor Attitudes Index for the UAE mirrors the growing confidence amongst UAE investors in their local market, said Waterfield. The Index remained stable at 15 points, only three points below its highest ever level.
“Unlike Hong Kong and Singapore – where both the index and investor sentiment seems to fluctuate from wave to wave of research – UAE investors are generally demonstrating a balanced, long-term approach to their investment planning, and do not appear unduly worried about short-term market fluctuations,” said Waterfield.
Waterfield expressed concern over the large amount of UAE investors not seeking suitable professional financial advice.
Confidence in the present and future UAE investment market has dramatically improved, with 44 per cent of respondents viewing the current market as an improvement on the market, six months previous. Considering the present market to be in a worse state than that of six months ago, were just 16 per cent of respondents, according to the report. This figure is the lowest response since the research was initiated.