Gulf pours money into UAE realty

The UAE remains an attractive destination for GCC nationals to invest in real estate because of its developed regulatory systems and value for money properties, industry analysts said yesterday. New figures released by the UAE Ministry of Finance show an increase in the number of registered real estate contracts held by Gulf nationals in the UAE. The statistical report on the Gulf Common Market, which was released on Saturday, revealed the number of contracts had increased to 4,604 in 2010 from 4,024 the previous year. "These figures suggest there are properties available that have reached a good price at which people can afford to buy," said Elaine Jones, CEO of Asteco Property Management. "Property purchases [that people] committed to previously are now being realised and registered as the projects are completed, and secondly there continues to be an interest in buying property in the UAE despite the economic downturn," she added. According to Jones, there may be a number of distressed sellers in the market place as many people waited to see if conditions improved but were then forced to sell at discounted rates, creating a host of attractive investment opportunities. She says, however, that the number of Gulf nationals buying property in the UAE shows the country's property market is an attractive long-term investment and that the UAE continues to be a preferred location for either primary or secondary homes. "Investment in completed property that meets the rental market's checklist of requirements has historically been a safe method to protect and generate wealth." Jones said. "The cross border living of GCC nationals, who have grown their business throughout the region or see value in spreading their operations and diversifying their risk by exposure to a larger market place, also see value in participating in the real estate sector," she added. The UAE's real estate market crashed at the height of the global financial crisis in 2008 with thousands of ambitious developments either cancelled or put on hold indefinitely. However, the UAE has achieved a reputation as a safe haven in recent months amid geopolitical turmoil across much of the Middle East especially in Egypt, Libya and Bahrain, which has enticed many property investors and funds back to the country's real estate sector. From / Gulf News