Property 'now the key asset class for UAE investors'

Investors in the UAE are increasingly focusing their attention on real estate, it has been claimed. The latest Friends Provident International (FPI) Investor Attitudes report indicates that property in the region is being seen as an increasingly secure investment.

The study revealed that UAE investors are also more eager to invest in gold, equities and bonds. However, FPI found that property was the preferred asset class for investors in the emirates, reports Gulf Business.

Some 27 per cent of survey respondents said it is 'a very good time' to invest in UAE real estate. This compares with just 13 per cent in the previous FPI report. The domestic property market has been in strong recovery mode for some months, with Dubai attracting particular interest.
Research published by Jones Lang LaSalle recently showed that residential sales prices increased by almost a fifth (18 per cent) year-on-year during the first quarter of 2013. This suggests that demand for real estate is continuing to rise, having an inflationary impact on property values.

Matthew Waterfield, general manager for the Middle East and Africa at FPI, noted that - along with gold - property remains the most popular asset class for UAE investors "by some distance". He said it is good to see that the Friends Investor Attitudes index for UAE has eclipsed the indices for both Hong Kong and Singapore. "This reinforces the generally positive consumer sentiment that has been reported in the country as of late," he stated. Mr Waterfield added that it signifies "a return of confidence to the local investment markets".

Earlier this month, Al Masah Capital claimed in its Mena - Alternative Investment Strategy 2013 that demand for both residential and commercial real estate remains strong in the UAE. The firm cited economic improvements, a rising population and the emirates' booming tourism industry as being key factors in the strength of the market.

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