In Which Countries Do Emirates Investors Build Houses?

Which Countries Do Wealthy Emirates Investors Prefer to Build Second Homes in?

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Buyers from the Middle East have long invested in luxury homes in prime UK postcodes, with central London areas such as Kensington and Knightsbridge leading the way. Buyers from the UAE have historically shown interest in some of London’s most exclusive areas, where property prices can be among the highest in the world. Particularly popular are areas such as Kensington, Knightsbridge, Mayfair and Belgravia, home to luxury residences that often sell for tens of millions of pounds.

Properties here often include impressive mansions, luxury apartments with high-quality finishes and exclusive amenities such as concierge services, spas and gated gardens.

Investors and buyers from the UAE value these areas not only for their luxury and exclusivity, but also for the opportunity to preserve and grow their investments. London real estate in these areas is considered a stable and reliable asset, making it attractive to international investors looking for safe options for placing their funds.

At the same time, purchasing real estate in such areas is not only a financial investment, but also indicates the high social status of the owner, emphasizing his belonging to the world elite.

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The row of 1960s houses with unkempt gardens in a quiet cul-de-sac near Richmond-upon-Thames seems little different from the red-brick Ecuadorian embassy in Knightsbridge, where Julian Assange spent seven years holed up, just opposite Harrods.

The nondescript suburban dwellings also bear little resemblance to the Queen's birthplace in central London or Sexy Fish, the seafood restaurant where diners sit among Damien Hirst's mermaid sculptures.

However, all of these properties are part of a secret £5.5bn estate owned by one of the world's richest heads of state, Sheikh Khalifa bin Zayed Al Nahyan, president of the United Arab Emirates and emir of Abu Dhabi.

Despite all its high-profile addresses, ownership of the portfolio has been shrouded in secrecy for decades. “It was built underground through secretive deals, quietly assembled over many years,” said a source familiar with Khalifa’s business dealings.

Now, leaked documents, court filings and an analysis of public records have allowed the Guardian to trace Khalifa’s holdings in the UK, revealing how the president of the oil nation has become a major landlord in London. Khalifa’s London property empire appears to dwarf even that of the Duke of Westminster, a 29-year-old billionaire aristocrat who owns large swathes of the city.

Khalifa's personal property portfolio, which spans some of London's most expensive areas, is largely made up of "super-prime" commercial and residential properties. Flats in one of the portfolio's luxury blocks are on the market for around £20 million each.

In recent years, money from Abu Dhabi has continued to flow into London's "super-prime" property thanks to a weaker pound.

Abu Dhabi-based Aldar Properties (ALDAR.AD) has acquired London-based developer London Square for an enterprise value of AED1.07 billion ($291 million) in its first acquisition outside the Middle East. “Aldar intends to leverage its expertise and balance sheet to support London Square’s land acquisition strategy to enable it to develop larger, more central sites in London,” the companies said in a joint statement on Friday.

The companies said the deal should also have a positive impact on sales given the cross-selling opportunities between their respective customer bases. Established in 2010, London Square is best known for its Nine Elms development, located right next to Battersea Power Station. The development includes more than 750 luxury homes, affordable housing and 21,500 square feet of commercial and retail space.

Aldar, at 25%, is owned by Abu Dhabi's sovereign wealth fund, Mubadala Investment Company, and at 26% by International Holding Company, which is part of the business empire run by Sheikh Tahnoun bin Zayed al-Nahyan, the UAE's national security adviser and the president's brother. The UK housing market boomed during the pandemic but lost much of its momentum when the central bank raised interest rates 14 times in a row from December 2021 to August this year, before pausing in September.

Leading Abu Dhabi developer acquires London Square for $291 million - December 2023

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Interest in New Zealand homes from the United Arab Emirates has increased sharply in the weeks since the National Party proposed lifting a ban on foreign buyers buying luxury homes, compared with the same period last year, according to data from luxury property agency New Zealand Sotheby's International Realty. September 25, 2023.

Why Living in Dubai Can Be Difficult

While Dubai is renowned for its luxurious lifestyle, stunning architecture and global business opportunities, living in this dynamic city comes with its own set of challenges:

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1. High cost of living

Dubai is one of the most expensive cities in the world. To maintain a comfortable standard of living, it is necessary to take into account significant costs:

• Accommodation: Renting and buying property in prime areas such as Downtown Dubai, Dubai Marina and Palm Jumeirah is not cheap.
• Education: International schools for children are expensive.
• Medicine: Although Dubai has a high standard of medical services, private treatment is not cheap.

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2. Climate

Extreme heat, especially in summer, creates discomfort in everyday life:

• Temperatures often exceed 40°C, making it almost impossible to stay outdoors.
• High humidity makes the situation worse, especially for those not accustomed to such a climate.

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3. Cultural and legal differences

Dubai lives by Sharia law. Despite its liberality compared to neighboring countries, strict rules must be followed:

Behavior:

Public displays of affection, inappropriate dress, or certain behaviors may result in fines and legal consequences.

• Judicial system: Laws differ from those in Western countries, including strict penalties for actions such as late debt payments or minor infractions.

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4. Transit community

Most of Dubai's residents are expats, which creates an atmosphere of temporariness:

• Friendships are often short-lived as many people move in search of new opportunities.
• Building a long-term sense of community can be difficult in such a dynamic environment.

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5. Traffic and transport

Despite the excellent infrastructure, the city's rapid growth has led to some difficulties:

• Traffic jams: During rush hour, roads are heavily congested, increasing travel times.
• Limited public transport: While the metro and buses are efficient, they do not cover all areas, and a car often becomes a necessity.

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6. Work-life balance

A competitive work environment and high expectations create additional challenges:

• Long working hours: Many companies require a lot of dedication, which leaves little time for personal life.
• High stress levels: The fast pace of life can be tiring.

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Living in Dubai offers unique opportunities and challenges. Despite the luxury and innovation, it is important to be prepared for high costs, extreme climate and cultural peculiarities.