The “World Wealth 2024” report expects that Dubai will remain an attractive destination for investors from all over the world, as demand for real estate is increasing rapidly, and it is considered a truly global destination, which indicates that investing in Dubai may be a strategic option in 2024, especially in the residential real estate and hotel sectors. .
The report indicated an increase in investment in real estate worldwide, with approximately $483 Billion expected to be invested in this sector during the current year. This increase is due to investors turning towards real estate as a viable investment alternative, in light of the rise in stock prices and expectations of lower interest rates, according to the real estate consulting firm, Knight Frank.
The report pointed out that among the countries witnessing exceptional growth in their foreign investments, the UAE stands out as it recorded a 349% increase in investments during 2023, making it the largest investor in the world last year.
The UAE ranked fifth in the world in the preferred destinations for real estate investment for the world’s rich, ahead of Switzerland, Spain, Italy and Portugal, respectively, and after Britain, America, France and Australia, respectively.
Globally, the report expected that global GDP would reach about 2.9% in 2024, down from 3.1% last year. Investors from the United States, Canada and Singapore accounted for just under half of the total global investment in cross-border commercial real estate in 2023. However, they were among the top 10 global sources of cross-border capital. The only investors who increased their investments in 2023 were the UAE, by (+349%), and Japan, by (+156%), making the UAE the largest investor in the world that year.
The report advised investors to invest in Dubai because it is a good bet. And attributed this to the fact that the population is growing rapidly, there are areas of land and new projects, in addition to the fact that the city is now considered a truly global destination, and investors have a wide range of opportunities for 2024 and beyond. The best investment option would be in the residential real estate sector, but there is also a short supply of office space and investment-grade assets, and hotel occupancy will remain very buoyant, for example.
The UAE and Japan witnessed an increase in Chinese purchases, while Australia maintains its position as a prime choice for purchasing foreign real estate, and real estate was the preferred category in which the Chinese accumulated their wealth, as many of them invested up to 70% of their savings in real estate, whether local or international.