Group chief investment officer at Emirates NBD Group speaks to Khaleej Times about long-term outlook in the country. How much is the UAE real estate market affected by regional geopolitical tension? Not at all, according to experts.
“The long-term outlook is absolutely brilliant because UAE is next Switzerland. There’s no question about the fact that even having geopolitical tensions around is not an issue for the UAE real estate,” Maurice Gravier, group chief investment officer at Emirates NBD Group, told Khaleej Times in an interview on Monday.
Gravier added that Switzerland did not suffer even when its neighbours were at war for 700 years.
He said that Switzerland is one of the most expensive real estate residential markets in the world but the UAE property market, when compared to other major capitals and especially financial centres, is still very cheap.
Despite the regional geopolitical tension in the Middle East, the UAE is a safe haven for investors due to its economic and political stability, and one of the highest returns on investment (ROIs).
Dubai property prices have rallied in the past two years, rising at a double-digit rate on the back of strong demand from residents and investors – both local and foreign. Despite the rally, prices are still much cheaper than most of the other financial capitals around the world, such as Hong Kong, Paris, London, and New York.
As of December 2023, prime residential capital value of Dubai was $850 per square foot as compared to $3,970 in Hong Kong, $2,560 in New York, $1,920 in London, $1,550 in Paris, and $1,140 in Mumbai, according to data shared by real estate consultancy Savills.
In cash on lower prices as well as low taxes, many high net worth individuals and professionals from around the world as well as within the UAE invested in Dubai’s property market, propelling to record highs in 2023.
Maurice Gravier said with more supply coming in the market, prices are expected to moderate in the coming years.
In Dubai, 39,400 units were handed over last year – the highest number of handovers witnessed since 2020, according to Cushman & Wakefield Core. In 2024, there are over 65,000 units slated for handover. Cushman & Wakefield Core’s estimates for 2024 are at around 32,000 units, of which 76 per cent are expected to be apartments and 24 per cent villas.
This Article is originally published on: : https://www.khaleejtimes.com/business/realty/uae-property-market-not-affected-by-regional-geopolitical-issues-says-expert