GCC’s rich prefer real estate investments

April 19, 2016 2:42 pm

Close to 120 regional and international luxury industry experts will deliberate major challenges and opportunities for this region’s premium goods and services sector. (Image supplied)

Real estate continues to be a preferred investment route for the GCC’s high-net-worth individuals, according to a recent report.

 

Around 63 percent of HNWIs from the Arabian Gulf plan to invest in locations such as Dubai, Abu Dhabi and Sharjah, according to Cluttons’ 2016 Middle East Private Capital Survey Part II, which was conducted in partnership with YouGov.

 

Of those surveyed, 27 percent identified Dubai in their top three destinations within the GCC, while 21 percent chose Abu Dhabi and eight percent selected Sharjah.

 

The third edition of the two-day arab luxury world conference will delve deep in to the investment and spending habits of HNWIs from the region.

 

The conference on the business of luxury will be held on June 01 and 02 at The Westin Mina Seyahi hotel, Dubai, and will review the expectations and the evolution of high-net-worth individuals when it comes to luxury in the GCC, and beyond, during a session titled “The spending and needs of HNWIs”. Close to 120 regional and international luxury industry experts will deliberate major challenges and opportunities for this region’s premium goods and services sector. The theme of 2016 conference is “The New Normal”.

 

On the real estate investment front, Cluttons’ senior partner Steve Morgan says:

 

“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.”

 

According to data from the Dubai Land Department, GCC nationals were the largest investors in Dubai real estate in 2015, with a total of AED 44 billion being committed over the course of the year. The strength of GCC investment into Dubai real estate over 2015 demonstrates the continued desirability of the emirate as an investment location and the most sought after investment destination in the region. Dubai also emerged as the most preferred location for real estate investment in the Middle East during 2016, based on the findings of Cluttons’ latest research.

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AMEinfo Staff
By AMEinfo Staff
AMEinfo staff members report business news and views from across the Middle East and North Africa region, and analyse global events impacting the region today.

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