An impressive 58% of UAE residents are planning to invest in property either locally or overseas in the next year according to a YouGov survey contracted by property investment company – IP Global
Findings of the survey of 1,000 UAE residents for the fourth year running saw property remaining the most popular type of investment asset. The survey went further to understand the needs of the public, reviewing their investing preferences, behaviour and motivation, while also exploring the markets they wished to invest.
Richard Bradstock, Director and Head of the Middle East at IP Global, said: “This year we have felt investor confidence has returned after the impact of Brexit and the US Election. In fact, from our global study, UAE residents have the strongest appetite to invest in overseas property (14%) in comparison to citizens from Hong Kong, South Africa and the UK.
“At IP Global, we are continuing to invest in mature, low-risk western destinations such as Germany and the UK. However, what has changed recently is that whereas previously our customers were looking to purchase one high-value property in a capital city, they are now looking to instead divide the funds and diversify their portfolio, purchasing two properties in tier two cities, that offer more affordability and higher growth rates.”
The survey showed when choosing the particular location for this future investment, 39% of UAE residents are planning to invest in property in their home country, 26% are hoping to acquire housing in their country of residence and 14% are looking to purchase assets overseas. When asked what the main motivations for UAE residents were, when investing in overseas property, the most frequent responses were future living accommodation (48%), to produce funds for retirement and their children’s education (46%) and, lastly, capital gains (39%).
The survey also found the three main reasons that prevent UAE residents from investing overseas are a lack of understanding of overseas property markets (32%), a lack of understanding of the laws and regulations of overseas property markets (31%) and tax considerations (28%).
The YouGov study also provided some interesting facts about UAE residents demographics with the participants being divided into Emiratis, Arab Expats, Westerners, Asians and Other. Results found in the future, Asians are most likely to buy property in their home country. When investing abroad, the location that UAE residents plan to invest can also be divided into demographic, as the majority of Emiratis (31%) and Asians (23%) prefer America, whereas Arab expats are divided between the USA (18%) and the UK (18%). In comparison, the UK remains the favourite location for Westerners (34%) to invest.
Similarly, the main motivation for investing in property changes depending on the demographic: most Emiratis were looking for pure capital gains (55%), Arab expats wanted future living accommodation (50%) and most Asians planned to invest to earn funds for retirement and their children’s education. However, Westerners had three incentives: living accommodation (43%), resources for retirement and their children’s education and a monthly rental income.