The United Arab Emirates (UAE) expects to match some of the world’s most progressive real estate sectors — Central London, Mumbai and Singapore. As the annual property show CityScape Abu Dhabi is held, watchers cannot help but note UAE’s strengths in comparison to the other cities.
While commercial and residential property prices in the three cities have peaked over the years, the revaluation came over a certain period of time. Factors that have led to higher prices are their favourable geographic locations, a secure legal framework and an inflow of wealth from both domestic and foreign investors, as well as a large banking sector that offers loans against property.
Singapore has become a leading business city, backed by clearly established property ownership rights, which resulted in a huge boom in the 1980s.
Since then, local and foreign investors have caused waves of speculative investment, which have pushed prices higher and led to Singapore being a global property hub.
With a per capita GDP that places among the world’s top five, UAE’s wealth is undeniable. But property laws were only established recently, although they have quickly evolved into a model modern system.
Overseas investment is growing as more investors continue to capitalise on the UAE as a safe haven for personal and commercial reasons. With these factors in place, UAE’s real estate could surprise investors.
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