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April 6, 2016, 13:05, Dubai
Dubai, Abu Dhabi and Sharjah have emerged as the region’s most popular investment destinations amongst GCC High Net Worth Individuals, according to leading real estate consultancy, Cluttons. Cluttons’ 2016 Middle East Private Capital Survey Part 2, in partnership with YouGov, shows that 63% of GCC HNWI plan to invest in their preferred real estate locations during 2016. Of those surveyed, 27% identified Dubai in their top three destinations within the GCC, while 21% chose Abu Dhabi and 8% selected Sharjah.
Steven Morgan, Senior Partner at Cluttons, “For the Gulf states as a whole, the oil price decline has certainly put budgets under pressure and has triggered a number of macro policy amendments including the phasing out of energy subsidies and the introduction of VAT. We expect these measures to put a clear squeeze on household finances but for now the investment sentiment of the region’s High Net Worth Individuals remains positive, particularly towards the UAE which is seen as somewhat of a regional investment safe haven.” Faisal Durrani, Head of Research at Cluttons commented: “The variety of investment options available in Dubai range from low-end, high yielding residential units in peripheral schemes such as International City and Discovery Gardens, to more sophisticated investment options in the office market, where yields can range from 6.5% to 9%. We’re also witnessing the emergence of worker accommodation as an increasingly popular asset class, which can offer yields of between 10% and 20%.”