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Property is now a more popular investment asset class than gold among UAE residents, according to a survey conducted by property investment firm IP Global in collaboration with research company YouGov. Property makes up 53 per cent of the investment portfolios of residents, compared to 43 per cent who hold gold, a traditional safe-haven asset, according to the survey.
The next popular asset classes were both commodities, bonds and stocks, as well as fixed and time deposits, which are in the investment portfolios of 29 per cent of respondents.
“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,” said Paul Preston, Director and Head of IP Global in the Middle East, in a statement.
Of the UAE residents who have invested in property, 41 per cent invested in overseas property, compared to just 12 per cent who own property in the UAE, suggesting there is presently greater confidence in overseas property markets.
The survey, however, noted that this could change as 57 per cent of respondents named Dubai as their next preferred property investment destination, compared to 21 per cent who considered London as the location of their next property purchase.
“More and more people are starting to see property investment as one of the highest-performing asset classes within their investment portfolios,” said Preston. “There is definitely an increasing confidence in the Dubai property market, 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.”
He adds: “We’re not just seeing interest in the traditionally popular Prime London areas either, with investors at last week’s Cityscape Global eyeing properties in less well-known outer London areas with higher rental yield potential. We’re also seeing more interest than ever in markets outside of the UK, such as New York, Miami and Chicago in the US and Melbourne and Brisbane in Australia.”
Preston’s findings correlate with investor sentiment in the survey, with New York being the next popular investment location after London for 13 per cent of UAE residents, followed by 8 eight per cent of respondents choosing Melbourne and Miami.
Now, thought of joining the bandwagon? Check out, why Dubai remains an exciting investment destination.
Source: Property Weekly