Kuwaiti investors currently account for nearly 60% of Dubai property purchases by GCC nationals, according to figures just released by the UAE Ministry of Finance.
These findings have been backed up by DAMAC Properties who are a luxury Dubai-based developer who confirm they have noticed an increase in inquiries from Kuwaiti nationals over the last six months.
Niall McLoughlin, Senior Vice President of DAMAC Properties has a good idea as to the reason why and says “Dubai is only an hour and a half flight from Kuwait, which makes it an ideal location for a second home or even a primary home for some Kuwaitis. Dubai has always been popular with Kuwaiti investors, but given the price and quality of properties now available on the market, Dubai offers phenomenal value for money.”
Although affordability is definitely a key factor, another element stimulating the property market revival is the implementation of new strata laws which favor home owners, and this is helped boost confidence within the property sector.
McLoughlin went on to say “Dubai’s real estate market is now more stable and sustainable. Gulf investors are flooding back into Dubai and the broader UAE’s property sectors on signs that the market bottomed out, and is already well advanced with the recovery phase.”
According to the latest FPI investor sentiment survey, confidence in the UAE is currently at its highest level for a year and investors are feeling increasingly optimistic about the outlook for the economy here with 60% predicting that investment markets will improve over the next few months. The IMF has also upgraded its economic growth forecast for GCC countries this year to 7.8% which would mean the economy here is performing much better than most developed economies.
Dubai has a lot to offer investors, as it has world-class infrastructure, a highly skilled workforce and is well established as a tourist destination.
Read the original press release here.