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Emiratis Gain Visa-Free Access to European Real Estate

Posted by: In: Real Estate 26 May 2015 Comments: 0 Tags: , , , , , , , , , , ,

This month saw an important change in EU legislation, granting Emiratis visa-free access throughout the Schengen area that is expected to boost UAE buying in European property markets.

Global real estate services company Cluttons forecast a significant uplift in investor interest coming from the UAE as a result of an improved investment climate together with dollar strength. The Emirates’ currency, the dirham is pegged to the dollar and consequently Emiratis are currently enjoying considerable purchasing power, particularly in the Eurozone.

Cluttons’ international research manager Faisal Durrani said: ” There is no doubt that visa free travel to the Schengen area for Emiratis has unlocked the door for a significant potential upturn in cross border property investment. The added benefit of the weakness of the euro means that dirham buyers are now about 23% richer than this time last year, in euro terms. This clearly makes an EU based property investment particularly attractive “.

Spain seems set to be the main beneficiary of UAE investment , mainly due to its rich Islamic heritage, particularly in Andalucia. Property prices in Spain are considered to have bottomed-out, spurring further investment interest not only from the UAE but the UK, as the pound continues to respond positively to a decisive general election result.

Middle East outbound investment has remained significant in recent years and is now expected to receive a further push from the UAE. According to world-leading real estate advisors CBRE’s ‘Middle East In and Out 2015’ report ‘Middle Eastern buyers invested a total of $14.1 billion outside their home region in 2014, making the Middle East the third largest source of cross-regional capital globally’.

The report identifies Europe as the preferred market for Middle Eastern Investors, receiving $10.2 billion in 2014. ‘In line with other investor groups, the year saw a major shift in investment strategies, with activity growing across second-tier European locations, including Amsterdam, Frankfurt, Budapest and Madrid. While still the most popular market, London received 32% of spend in 2014 compared to 45% in 2013, with Paris and New York growing their shares in 2014 to 16% and 10% respectively. London and Paris were the only two markets to retain a top five ranking in 2014’.

Europe’s property markets seem set to become an investors’ playground with buying activity rising from the UAE, the US and the UK. With investors largely seeking income generating assets in preference to principal residences or holiday homes, buyers are less likely to be concentrated at the luxury end of the property market.

Article by +Roxanne James on behalf of Propertyshowrooms.com

Source:: Property show rooms


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