Dubai-Amlak
Saudi Arabia ranked second in the region, according to a survey of 150 investment firms across the Middle East, in terms of preference as the best real estate market; With confidence in Dubai’s real estate market improving, it has become the preferred market for real estate investors in the Middle East, particularly over the last 12 months, according to Jones Lang LaSalle; The growing confidence in the emirate’s real estate market has been accompanied by a notable increase in both property sale prices and rental rates, according to Estico.

Real Estate Investment
Jones Lang LaSalle surveyed 150 investment firms across the Middle East and found that real estate remains a sought-after asset class among investors in the region, with the number of buyers outnumbering sellers in most regional markets. The report noted that Dubai has regained its position as the region’s preferred market thanks to a number of factors, including the recovery of prices and rental levels, political stability, improved economic fundamentals, and greater transparency compared to other regional markets.
Saudi Arabia ranked second according to survey participants, as its real estate market benefits from a large local population, rising energy prices, and political stability that has insulated the country from social and political unrest elsewhere in the region.
Abu Dhabi came in third, with survey participants expressing a desire to rebalance their investment portfolios by selling non-core assets and purchasing properties that better align with their long-term investment criteria. with approximately 50% of those surveyed indicating their willingness to sell some of their assets while seeking to acquire more suitable properties at the right price.
Real Estate Market
Craig Plumb, Head of Research at Jones Lang LaSalle Middle East and North Africa, said: “Overall, the real estate market in the Middle East is more optimistic this year, thanks to improved economic performance and stability.” However, little capital is being invested in real estate by entities outside the region, and regional investors continue to dominate the market overall.
The report noted that Middle Eastern investors remain the most prominent players in the global real estate market, having purchased $5.3 billion worth of properties outside the region in the first nine months of 2012 (more than the total for the entire world in 2011).
London remains the top destination for Middle Eastern investors, who purchased $2.3 billion worth of real estate in the United Kingdom during the first nine months of 2012, more than double the $1.2 billion invested during the same period in 2011.
Middle East Real Estate
The report noted that real estate remains a sought-after asset class for Middle Eastern investors, with many opting to buy rather than sell in most markets. The real estate market recovery and the scarcity of high-quality properties on the market have contributed to increased demand and driven prices for some properties in Dubai into the millions of dirhams.
Prices are rising significantly in certain locations, such as residential projects on Palm Jumeirah, Emirates Hills, and Downtown, according to Tom Banker, an investment sales consultant at Peter Homes. He explains that these investments stem from people growing tired of depositing their money in banks, where they earn very little interest.
Matthew Green, Director of Research and Consulting at CBRE in the Middle East, noted that the relative scarcity of high-quality properties is a key factor driving up prices for this type of real estate.
He said: “Many of the new real estate units available on the market are in secondary locations such as Dubai Land and Jumeirah Village. In fully developed areas such as Emirates Hills or Palm Jumeirah, there isn’t much vacant space. Consequently, the supply of new luxury properties is limited, and I believe this is the reason behind the greater growth in the luxury real estate market.
He added: “However, at the same time, luxury real estate here cannot be compared to that available in London, New York, or Singapore; rather, it is considered good value by global standards.
Real Estate Online
According to a real estate report prepared by propertyfinder.ae, the number of online searches for properties valued at 10 million dirhams or more increased in 2012 compared to the previous year.
Renan Bordo, General Manager of propertyfinder.ae, said: ”The rise in the number of searches for luxury properties over the past 12 months is not only an indication of increased liquidity in the market, but also of growing investor confidence in the country’s market.“
As for the identity of the investors, Green said they are coming to the market from China, as well as other parts of the Gulf, Europe, and South Asia: ”While much of the investment comes from within the region, we are seeing a rise in the number of Asian investors, even though they were not among the most prominent investors during the previous real estate boom.
Therefore, this is an interesting phenomenon.“ A quick search on propertyfinder.ae reveals that more than 100 homes are listed for sale in Dubai with prices starting at 40 million dirhams or more, including ”The Palace“ on Palm Jumeirah, with prices starting at 260 million dirhams.