Dubai Theme Parks to be Magnet for Tourists in 2017
In preparation for the World Expo to be hosted by the Emirate in 2020, Dubai has been pouring investment into its tourist infrastructure with the aim of attracting more than 25 million tourists in five years’ time.
There are currently three theme parks under construction that are expected to drive Dubai’s tourism towards its target when they open at the end of 2016. The theme parks are: Motiongate a Hollywood-inspired attraction based on major DreamWorks Animation and Sony Pictures movies; Legoland Dubai, the first legoland theme park in the Middle East and Bollywood Parks, offering a Bollywood movie experience.
Timeshare companies are particularly buoyant about the prospects for Dubai’s tourist sector, expecting growth in its timeshare industry of around 50% in 2017, once the parks are open to visitors.
Mohannad Sharafuddin of timeshare sales and marketing company Arabian Falcon Holidays said: “Dubai Parks and Resorts, the operator of Middle East’s largest multi-themed leisure and entertainment destination expects over 6.7 million ticketed visitors in 2017. That’s a huge number in the first year and will aid in the growth of the timeshare market here”.
“The timeshare market will grow exponentially in 2017, surpassing the growth rates of 15 to 20% per year and heralding a new era with annual growth rate of 50%, primarily driven by tourists visiting these theme parks,” he added.
All three parks are located close to Dubai’s international airport, Al Maktoum and will be easily accessible from there via the Emirate’s Metro system. Real estate in Dubai is also expected to enjoy rising interest as a direct result of growth in its tourist numbers over the next five years and beyond.
Further large-scale investment has been made into the construction of the €6.2bn Mall of the World by Dubai Holding. The mall is set to be the largest in the world, featuring a glass-domed theme park and expected to be a significant attraction for visitors in the Emirate.
“Dubai’s location, significant existing attractions and strong tourism infrastructure position it well to benefit from anticipated strong tourism growth in the Middle East,” Sharafuddin said.
Dubai presents a great opportunity for strategic property investment ahead of the World Expo in 2020. As part of the Emirates spending programme in tourism, the hotel sector is growing rapidly representing a very attractive investment market at the current time for those interested in income-generating property assets such as hotel rooms.
Article by +Roxanne James on behalf of Propertyshowrooms.com
Emiratis Gain Visa-Free Access to European Real Estate
This month saw an important change in EU legislation, granting Emiratis visa-free access throughout the Schengen area that is expected to boost UAE buying in European property markets.
Global real estate services company Cluttons forecast a significant uplift in investor interest coming from the UAE as a result of an improved investment climate together with dollar strength. The Emirates’ currency, the dirham is pegged to the dollar and consequently Emiratis are currently enjoying considerable purchasing power, particularly in the Eurozone.
Cluttons’ international research manager Faisal Durrani said: ” There is no doubt that visa free travel to the Schengen area for Emiratis has unlocked the door for a significant potential upturn in cross border property investment. The added benefit of the weakness of the euro means that dirham buyers are now about 23% richer than this time last year, in euro terms. This clearly makes an EU based property investment particularly attractive “.
Spain seems set to be the main beneficiary of UAE investment , mainly due to its rich Islamic heritage, particularly in Andalucia. Property prices in Spain are considered to have bottomed-out, spurring further investment interest not only from the UAE but the UK, as the pound continues to respond positively to a decisive general election result.
Middle East outbound investment has remained significant in recent years and is now expected to receive a further push from the UAE. According to world-leading real estate advisors CBRE’s ‘Middle East In and Out 2015’ report ‘Middle Eastern buyers invested a total of $14.1 billion outside their home region in 2014, making the Middle East the third largest source of cross-regional capital globally’.
The report identifies Europe as the preferred market for Middle Eastern Investors, receiving $10.2 billion in 2014. ‘In line with other investor groups, the year saw a major shift in investment strategies, with activity growing across second-tier European locations, including Amsterdam, Frankfurt, Budapest and Madrid. While still the most popular market, London received 32% of spend in 2014 compared to 45% in 2013, with Paris and New York growing their shares in 2014 to 16% and 10% respectively. London and Paris were the only two markets to retain a top five ranking in 2014’.
Europe’s property markets seem set to become an investors’ playground with buying activity rising from the UAE, the US and the UK. With investors largely seeking income generating assets in preference to principal residences or holiday homes, buyers are less likely to be concentrated at the luxury end of the property market.
Article by +Roxanne James on behalf of Propertyshowrooms.com
British Expats Surge on UK Income Generating Property
Offshore bankers Skipton International have reported a sharp increase in expat investment in UK buy-to-let property , particularly among Brits living and working in the UAE.
Jim Coupe, Managing Director of the bank said: ” We’ve had interest from all over the world but particularly the UAE. Our customers are showing they are making the most of the buy-to-let opportunity and with many now viewing the London property market as overheated, demand is set to increase for properties in other areas of the UK where rental yields are looking far more attractive for buy-to-let investors “.
Investors started to look beyond London’s property markets towards the middle of last year, cautious of putting capital into a rapidly overheating sector. Regional cities particularly in the north of England saw considerable rental growth in Q1 2015 which combined with lower base costs for property presents greater margin opportunities for investors.
According to research from British property management agency Homelet, UK rental prices for the first quarter of this year increased 10%, with regions outstripping London on growth.
British Expats working in the UAE are very well-placed to take advantage of growth in the UK’s regional rental market, mainly because of substantial and tax-free incomes. Expats in the US or earning in a currency pegged to the dollar as in UAE, Hong Kong, the Caribbean among others, are also enjoying improved purchasing power. Expat investors see the UK as a dynamic investment market that represents a safe bet.
Mr Coupe added: ” The buy-to-let sector has certainly outperformed the FTSE by some degree since the millennium. Many expats are looking for long-term investments for which property is a potentially suitable option and will often utilise their own knowledge of a particular geographic area of the UK in which to select properties that represent good value and desirability to their target market of tenants “.
It goes to show that even among international property investors, home is where the heart is!
Article by +Roxanne James on behalf of Propertyshowrooms.com
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