Property is now a more popular investment class than gold among UAE investors, according to a new survey published on Monday.
The survey, released by IP Global and YouGov, polled 1,000 UAE residents to determine the property investment sentiment across the UAE.
It revealed that property makes up 53 percent of UAE residents’ investment portfolios, compared with 43 percent holding the traditional ‘safe haven’ asset of gold.
Of those UAE residents who have invested in property, 41 percent have invested in properties overseas, compared with just 12 percent owning property in the UAE, suggesting that confidence is greater in the overseas property market at present.
However, this could be set to change with 57 percent of those questioned naming Dubai as their next preferred property investment destination, compared with just 21 percent who consider London, a city often dubbed the property safe haven of the world, as the location of their next property purchase.
The next most popular asset classes were both commodities, bonds and stocks as well as fixed/time deposits, with these being found in the investment portfolios of 29 percent of respondents, the research showedc.
Paul Preston, director and head of IP Global in the Middle East, said: “As gold is typically considered a ‘safe haven’ asset when currency markets are volatile, this likely indicates that UAE residents currently have sufficient confidence in the currency markets to invest in property and to diversify their investment portfolios.”
Preston added: “More and more people are starting to see property investment as one of the highest performing asset classes within their investment portfolios.
“There is definitely an increasing confidence in the Dubai property market presently, although with property prices already starting to cool and Dubai typically being more cyclical than other global markets, we’re seeing sustained interest in overseas property markets from investors at Cityscape Global 2014 in Dubai.
“We’re also seeing more interest than ever before in markets outside of the UK, such as New York, Miami and Chicago in the US and Melbourne and Brisbane in Australia.” Source: Arabian Business