STAMN Real Estate Development has revealed a new index that ranks the relative power of different nationalities for buying UAE real estate. The ‘Foreign Buyer Power Index’ has assessed several factors such as currency exchange rates, affordability (compared to home country), wealth, average incomes, and capital mobility.
The transatlantic powers of the UK and USA, head the list, followed by Kuwait, Saudi Arabia and Qatar. Historically strong currencies, high wealth and free capital mobility are some of the reasons they feature towards the top of the index.
Surprisingly, India is only 18th in the list, despite having one of the biggest and most consistent buyer groups in UAE property. Despite plunging purchasing power due primarily to a weak rupee, India’s high net worth individuals and UAE-based expatriates, are still some of the most significant investors in UAE real estate.
“British investors, particularly those exchanging pounds for dirhams, are currently in a very strong position to purchase UAE real estate. The wealth of US and GCC investors also grants them strong purchasing power despite a weaker dollar,”said STAMN CEO Zheng Jian.
Euro-countries such as France, Germany and the Netherlands are in the top 10, along with Canada and Australia. Russia is within the top 20, with the politically-neutral UAE seen as a safe-haven, despite limitations on capital mobility. Kazakhstan is a surprise addition in the top 20, with its proximity to the UAE driving demand amidst challenges in its home economy.
“Across our developments, we are seeing different kinds of demand amongst foreign buyer audiences. We are seeing a trend where families are not only looking to move investment capital but also to live and work in Dubai. In Dubai Islands, we are seeing strong interest amongst European audiences, attracted to island living and the investment potential of ‘the next Palm Jumeirah’. Meanwhile, in the up-and-coming Jumeirah Garden City, we are seeing savvy Russian and CIS buyers looking for affordable family units.”
STAMN has more than 30 years of real estate heritage in Asia and is now rapidly expanding its land acquisition and project development in the UAE. In Q4, the developer intends to launch its fourth Dubai project.
