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Official figures reflect statistics that could make even the most black-minded skeptics and those, who were convinced that the recession in the Dubai property market is still there, change their point of view. In just two months, from April through May, foreign and local investors have almost doubled their activity increasing investments by 92%. And while in the first three months of the year real estate investments in Dubai reached AED25 billion (USD6.81 million), the total figure for the five months since the beginning of the year was AED48 billion (USD13 billion) as of May—that’s how much of their funds Dubai home buyers were eager to invest in this valuable and profitable asset in 2016.
Most expectedly, UAE citizens took the first place in this sort of investors’ rating: they have invested AED12.024 billion (USD3.27 billion) in Dubai apartments, studios and villas. UAE's neighbors, people from Gulf Cooperation Council states, contributed AED9 billion of the total foreign investments in real estate, and it's quite in line with the forecasts for an increase in investments from Iran after the lifting of sanctions from it, which seems to have had its effect. Investors from Saudi Arabia were also lavish enough with their investments in Dubai properties, having passed about AED3.655 billion (USD1 billion) of their funds into real estate developers’ and property owners’ accounts.
Among other Dubai real estate buyers, Indians can be called the second most active: they’ve spent about AED5.88 billion on Dubai palaces, villas, and modest studios too. The British, being confused by Brexit, seem to believe in this region’s stability even more than in their own’s, therefore having invested AED3.313 billion (USD 900 million) in Dubai's real estate. They are followed by Pakistanis, who brought about AED2.67 billion (USD730 million) of investments into Dubai real estate market.
Thus, foreign investment in Dubai real estate, made by representatives of 127 nationalities, amounted to AED12 billion (USD3.27 billion) for the above period.
Why are people willing to invest in Dubai even now, in times of economic uncertainty in most European countries? The answer to this question, according to the Director General of the Dubai Land Department, Sultan Butti Bin Mejren, has three aspects: high rental yields firstly (10% pa on average), investment security and region’s stability secondly, as well as the emirate’s confident future outlook as the third aspect (Expo 2020, tourism and urban development strategies, etc.).
