Over the past two decades, French investors have increasingly turned their attention to the Dubai property market, drawn by the promising investment prospects in the Emirate.
In fact, France was one of the top ten countries to invest in Dubai property during Q2 of 2023.
Like most global investors, France has recognised the potential of Dubai’s property market, which is currently experiencing its third growth cycle. Dubai stands out as one of the world’s top-performing property markets, offering substantial growth and appealing returns while other assets falter in a challenging macroeconomic environment.
The following statistics show significant evidenceof French investors within the Dubai property market. They are reflective of French confidence in the Emirate’s real estate sector and its potential for a favourable return on investment.
In Q1 of 2023, the French invested nearly €3.2 billion into European real estate. This amount is a 22% decrease on the past five-year average, yet French investment in Dubai hit record levels during the same time period.
French investors are actively diversifying their investment portfolios in Dubai’s property market. In the past, investors were predominately buying apartments. In contrast, now they are confident enough to purchase higher-ticket-priced residential assets such as villas and commercial or hospitality assets.
2023 saw the first Gulf Vision event in Paris. The flagship conference organised by Business France promoted investment between the two countries, with over 1,000 meetings taking place within a 48-hour period.
French investors are more understanding of several key factors that make Dubai an attractive investment destination:
Similar to other international investors, French investors are acquiring real estate in various key areas in Dubai, including:
Submarkets with more villas or townhouse stock, such as The Palm, tend to be more expensive, while apartment-dominated areas offer more affordable options. Most first-time French investors favour more apartment-focused markets, but there’s proof that the French appetite for villas and townhouses is steadily increasing.
Dubai’s property market has undergone significant changes in recent years, focusing on sustainability and transparency – encouraging cross-border investment from new markets such as France.
The Emirate now boasts the most transparent property market in the Middle East and North Africa region, garnering recognition from global consultancies. Investors from around the world can now benefit from enhanced policies and regulations implemented by the UAE government, promoting transparency and instilling confidence in long-term investments.
Having already established a close economic relationship at government level, France has aimed to complete a record level of bilateral trade with the UAE in 2023, surpassing the $8 billion achieved in 2022.
This new commitment further strengthens the deepening trade and investment ties between the two nations – and gives individual investors a sense of comfort in the long-term relationship between the countries.
France, the second-largest European economy, anticipates significant oil and non-oil trade growth with the UAE over the next 12 months.
While the traditionally strong luxury goods and aviation sectors are expected to remain the primary drivers of growth in 2023, individual investments in the Dubai property market will continue to increase further.
All this investment activity has happened despite a rapidly changing world marked by pandemic-driven economic uncertainty and the conflict in Ukraine. French investors, like many others worldwide, now see the Dubai, UAE, and GCC markets as some of the fastest-growing and strongest-performing opportunities available. This sentiment is predicted to become more mainstream in France over the coming years.
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