Sunday 4, September 2016

Dubai – MENA Herald: Real estate and development firm Tanmiyat Group, has identified an increase in buyers of Dubai property from emerging markets such as India and Africa, during the previous three financial quarters*. The influx of these investors has overtaken traditional buyers from developed nations such as the UK, Germany and Russia, who have seen unsteady economies in recent years.
“The Dubai property market remains attractive to foreign investors, however we have noticed a significant slowdown in purchases from our core countries in the Western region and a significant increase in buyers from new world markets,” confirmed Mohammed bin Odah, CEO of Tanmiyat Group.
“Most of the buyers are looking for a strong return on their investment and they are most interested in properties that are completed or are nearing handover. Since the Living Legends community is in its handover process, with phase one consisting of 500 villas successfully completed, we have witnessed increasing demand in the project from overseas”.
According to data from the Dubai Land Department (DLD), released by its Real Estate Research and Studies Department, total investment transactions for the first half of the year reached Dhs57 billion from 26,000 investors made up of 149 different nationalities.
Indians ranked as the number one foreign investor here, bringing in more than Dhs7bn to the emirate from just 3,656 transactions in the first half of 2016. This is expected to reach Dhs20bn by the end of the year.
“The Indian investor is interested in Dubai due to its close proximity to their home country, and the flexible rules and regulations of the property market has made it more attractive and increased confidence levels,” continues Mohammed bin Odah.
“Additionally, Dubai offers one of the highest returns on rental yield among all big cities. Several developments are netting as much as 10% returns annually – a number that is hard to beat – especially when looking at developed markets like London that are currently offering returns of around 5%”
Dubai properties also benefit from short-term rental potentials as a result of tourism, particularly during the winter months when the weather is warmer than in Europe. This is aided by first-class infrastructure such as beaches, restaurants and malls.
“Dubai as a destination is a prestigious brand, therefore buying a property here becomes an important statement and something most of the big investors look to have in their portfolios. When we sell outside Dubai we capitalise on our strong knowledge about ‘the brand’ Dubai, which adds value to any development or product,” adds Saleh M. Tabakh, Executive Director of Delta Real Estate.
“Not only this, but Dubai offers a range of units for each category, whether this be an apartment for less than Dhs400,000 or a signature villa for more than Dhs40,000,000. Add in the fact of being tax free and Dubai gets even more interesting to international investors.”
Tanmiyat Group, which has recently handed over phase one of its significant Living Legends Community in Dubailand, is looking to continue attracting foreign investors from emerging markets as it looks to phase two of the development. This includes two more residential towers expected to be complete by the end of 2016.
“Living Legends is back in the market with strong offers and new schemes that are very attractive to investors. We have embarked on several international roadshows this year, including Kenya in July for the very first time to connect with African buyers.”
“From there we went to India in August, which was hugely successful and attracted 115 key investors from over three days of workshop and presentations. In fact, we are looking to return to Mumbai in October to participate in the Dubai Property show,” concludes Mohammed bin Odah, CEO of Tanmiyat Group.