Saudi interest in Dubai real estate gains momentum

The Dubai real estate market continues to attract a strong and robust inflow of foreign funds in 2019 following the introduction of long-term visas and forward-looking policies.

The total value of Dubai real estate transactions jumped 33 percent to AED 34 billion in the January-May period in 2019 as compared to AED 24 billion for the same period last year, Dubai Land Department (DLD) figures revealed.

The same study suggests that in the first quarter of 2019, Saudi investors, with investments close to AED 1.3 billion, ranked third in terms of the number of real estate transactions in Dubai.

Prominent developers have observed that investors from Saudi Arabia have a big role to play in the upward trend for Dubai real estate and duly constitute the highest number among the GCC nationals.

Read: Saudis spent AED 3 bln on Dubai real estate in 9M 2018

“In Dubai, Saudi investors are drawn to mixed-use developments that offer the best of residential, commercial, and entertainment experiences,” Niall McLoughlin, senior vice-president at Damac Properties, said.

Keeping the Saudi cultural sensitivities and lifestyle preferences in mind, Damac launched its first Sharia-compliant luxury serviced apartments, Ghalia. The project, which commenced handovers in May 2019, features separate amenities for men and women, including dedicated dining facilities, gymnasiums and swimming pools.

Farhad Azizi, the chief executive of Dubai-based Azizi Developments, classifies Saudi nationals as knowledgeable and shrewd investors.

“Location, infrastructure, amenities, and, most importantly, the resulting rental yields and value appreciation are the determining factors in the purchase decision-making processes of Saudi nationals,” Azizi said.

“We recorded an 8 percent increase in sales to investors from Saudi Arabia between 2018 and 2019. Saudi nationals now constitute 25 percent of our investor portfolio,” he further added.

Continuing with the above, even the founder and chairman of Dubai-based Sobha Realty, PNC Menon, is of the opinion that the Dubai real estate has always struck a chord with Saudi investors.

“Yes, 10 percent of our sales come from Saudi nationals, with Creek Vistas and Hartland Estates villas being the most preferred product,” Menon said.

Write to Paromita Dey at paromita.d@argaamplus.com