Dubai trumps London as top property hotspot for 2017

There has been an increase in enquiries in Dubai property after the US polls.

Despite a persistent uncertainty in the Middle East's real estate market, which was further aggravated by the election of Donald Trump as the 45th US president, Dubai overtook London as the most preferred property investment location for 2017 in a regional survey.

Toronto emerged in joint third place with Abu Dhabi, Singapore, Kuala Lumpur and New Delhi as property investors' other choices for 2017, Cluttons said in its Middle East's Private Capital survey.

Faisal Durrani, head of research at Cluttons, said Dubai is a market that is well-known and well-understood and with events such as the 2020 World Expo looming on the horizon, the surprise US election results may boost domestic investment activity temporarily.

"At this early stage, it certainly makes London look like a much safer investment hub for Middle East investors; however with currencies pegged directly to the dollar, the pull of a London investment may be eroded to an extent, should the dollar slide in the coming weeks and months," said Durrani.

"This may well strengthen the appeal of an investment closer to home, helping markets such as Dubai and more secondary locations like Doha, perhaps, benefit from any temporary recoiling in global property investment appetite."

The recent election of Donald Trump as the 45th US President is set to cause further uncertainty for the Middle East's real estate market, at least in the short term, Cluttons said.

Steven Morgan, senior partner at Cluttons, said while it is still early days, it is important to think about the potential implications on the region's property markets that will be caused by any sudden policy changes made by the incoming president, which affect regional confidence.

Morgan said an uptick in imported inflation as a result of a weaker dollar will put already stretched Middle East household finances.

"Uncertainty is relative and it's clear that it's going to linger, so markets like Dubai are likely to benefit from more inward investment as investors gravitate to locations on their doorstep with a proven track-record," said Morgan.

Propertytrader.ae, an online real estate portal in the UAE, said it had seen a sudden shift in investor enquiries in Dubai soon after the US elections.

One offshoot of this poll outcome could be an increase in American and other investors opting to buy properties in Dubai which is seen as a safe haven.

- issacjohn@khaleejtimes.com