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Thu 31 May 2018 09:45 AM

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GCC investor confidence remains strong, survey shows

A study conducted by YouGov and Select Property Group found that 32 percent of UAE investors look to make an investment every quarter

GCC investor confidence remains strong, survey shows
In the UAE, 32 percent of investors said they were looking to make a new investment every quarter.

A vast majority of investors in the GCC have invested in property in their home countries, even as the appeal of foreign property continues to grow, according to a new YouGov and Select Property Group survey.

According to the survey, 75 percent of investors in the GCC have invested at some stage in property in their own countries, while 60 percent said they were considering an international real estate investment in the future.

Additionally, 71 percent of GCC investors said they look to make a new investment every six months. In the UAE, however, 32 percent of investors said they were looking to make a new investment every quarter.

Of the respondents, 63 percent described themselves as having some or a strong level of investment knowledge.

The respondents were also asked to consider their previous and potential future investments in bonds, stocks and real estate, as well as mutual funds, bank products, cryptocurrencies and fine art. Across every category, investors demonstrated a desire to increase their level of investment over the next few years.

In Saudi Arabia, 5 percent of respondents noted that they’d already spent $500,000 on cryptocurrencies, despite the relative infancy of the asset.

Overall, however, investments into cryptocurrency lagged far behind more traditional products such as real estate.

“The results show that investors in this region are highly motivated and it’s interesting to see the mix of key investment choices amongst the varying demographics.

"It’s promising to see that GCC residents are also inclined to make regular investments, constantly keeping an eye on the market and looking to capitalise on the latest opportunities,” said Adam Price, managing director at Select Property Group.

The study also looked into investor motivations, and found that there is a shift away from a portfolio serving as an income generator, and moving towards long-term capital growth for men, while women are generally seeking financial security.

In the UAE, almost the same number wanted to generate a regular income or long-term capital growth from their previous investments but over half (56 percent) said their future investment motives will change, with long-term capital growth likely to be the more important motivator going forward.

“It’s interesting to watch the shift in the market, both in terms of investment preferences, but also in the motivators driving individuals to invest. As real estate serves as a promising long-term investment, increased interest in the sector is a natural occurrence,” Price added.

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