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29 March 2024

World's top property buyers: UAE?

Published
By Parag Deulgaonkar

UAE nationals have been placed eighth on the UK-based Knight Frank’s list of most important buyers of new-build residential property globally.

[Image via Shutterstock]

London, Paris and Geneva are the top three cities where Emiratis are buying two- or three-bedroom apartments, with average price of $2.5 million, the global consultancy said.

Indians come 10th on the list with London, Dubai and New York being their favourite property investment destinations.

Chinese investors top the most influential buyer nationality list, followed by investors from Singapore and Russia, who come in second and third places, respectively.

New York, Paris and London are amongst the most sought after markets.

Sarah May-Brown Associate Director of International Residential, Knight Frank, says: "International investors want liquidity.

[Image via Shutterstock]

“They want the best places to invest and be secure. The reasons London and New York are very popular is they are two genuine safe havens.

“Buyers looking for trophy assets may be willing to try a more offbeat locale for lifestyle features, but that isn't a typical motivation."

As per the Knight Frank survey, buyers are increasingly drawn to cities they perceive to be sheltered from wider economic issues with some 47 per cent of respondents noting that the “safe haven effect” was the biggest draw for their respective markets Locations such as Dubai and Monaco fulfill this requirement and, accordingly, international buyers account for a growing share of their respective new-build markets.

As well as offering a shelter from wider economic troubles, these locations are felt to offer the potential for long-term capital appreciation.

In Dubai, prices have risen by over 20 per cent over the 12 months to June. Similarly in Monaco and New York prices rose by 8.2 per cent and 13.6 per cent, respectively.

[Image via Shutterstock]

Political and economic risk in a buyer’s home market was also named a key driver of international demand by 39 per cent of respondents.

Business and currency issues were highlighted as other key factors in a wealthy individual’s decision to buy new-build property overseas.

Government policy can also have an impact.

The survey also found education and lifestyle playing an increasingly important role when it comes to cross-border property investment.

Cities which are home to world-class schools and universities, as well as offering a high quality of life and safe environment, stand to benefit in the long-run.

Dubai already has Knowledge Village, the world's only free zone area dedicated to human resource management and learning excellence.