Dubai’s property market has consistently maintained its allure as a highly sought-after investment destination for Kuwaiti investors, and transaction volumes are set to rise in the foreseeable future.
Over the course of the past two decades, Kuwaiti investors have recognised the immense growth opportunities offered by Dubai’s real estate sector, prompting them to make substantial investments.
Now, the rate of Kuwaiti investment could increase following recent changes to adopt a more Dubai-like approach to its own real estate markets.
Kuwaiti property investors saw the volume of private housing transactions in their country fall 34% last year. Many investors have already looked overseas for more in-demand and performative markets – and Dubai is often the destination of choice.
It is hoped that in time plans to follow Dubai’s lead and allow overseas investment into the real estate market will improve performance, but until then, the appeal of Dubai’s property market remains strong – the potential for substantial returns on investment, supported by a robust and dynamic economy, and favourable regulatory frameworks.
Kuwaiti investors have actively seized upon these advantages, capitalising on the burgeoning real estate market in Dubai and strategically expanding their investment portfolios across the region. This ongoing interest and confidence in Dubai’s property market reflect the enduring partnership between Kuwait and the UAE, fostering a mutually beneficial relationship that strengthens economic ties and propels both nations towards further prosperity in the real estate sector.
Long tradition of investment volume
For years, Kuwaiti investors have been a major force in Dubai property. Back in 2011, it was revealed that 60% of all properties purchased by GCC nationals in Dubai, were Kuwaiti investments.
It prompted then senior vice president of Damac Properties Niall McLoughlin to say:
“Dubai is only an hour and a half flight from Kuwait, which makes it an ideal location for a second home, or even a primary home for some Kuwaitis. Dubai has always been popular with Kuwaiti investors, but given the price and the quality of properties now available on the market, Dubai offers phenomenal value for money.”
Diversified investment approach
Kuwaiti investors take a pragmatic approach by exploring various real estate options, including luxurious villas, upscale apartments, commercial properties, and ventures in the hospitality sector. This diversification allows them to maximise their potential returns.
Attractive rental yields
Dubai’s property market offers enticing rental yield opportunities for Kuwaiti investors. Although data is scarce, it is thought most properties in Kuwati markets such as Ahmadi and Hawally produced yields of around 5%. Rental yields in Dubai can reach 7+% in some markets.
Long-term performance outlook
Dubai’s property market has demonstrated remarkable resilience and continuous growth, with double-digit capital gains and increased sales transactions surpassing pre-pandemic levels. This consistent upward trajectory instills confidence in Kuwaiti investors, assuring them of significant long-term returns.
Dubai’s enduring allure, investor-friendly climate, and promising economic prospects continue to attract significant investment from Kuwaiti investors, positioning it as the preferred choice for lucrative real estate opportunities. Furthermore, Dubai’s advantageous location and reputation as a global business hub make it a highly appealing investment destination for investors across the GCC region.
This robust demand fuels the growth of both residential and commercial property markets, ensuring a stable rental market and the potential for long-term capital appreciation. Additionally, the strong political and economic ties between the UAE and Kuwait further enhance the investment environment for Kuwaiti investors.
Dubai’s unwavering appeal, bolstered by its strategic advantages and thriving business ecosystem, continues to position it as a prime investment hub for Kuwaiti investors seeking profitable ventures in real estate. The city’s favourable investment climate, combined with the established partnership between the UAE and Kuwait, paves the way for mutually beneficial opportunities and sets the stage for sustained growth and prosperity in the Dubai property market.
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