Gulf investors, flush with cash, eye global real estate. As the real estate market continues to grow both in the GCC and on a global scale, investing in property is one of the most profitable options. According to media reports, Gulf investment in foreign property will soar in 2008 because of the liquidity in the region and credit crunch in other parts of the world. In a media interview, Blair Hagkull, Managing Director (Middle East and North Africa) of Jones Lang LaSalle (the world’s second largest commercial real estate broker) said: “Flush with surplus cash from record oil revenues, Gulf Arab investors will spend more than $20 billion (approximately Dh73.4 billion) on international property acquisitions in 2008.” The International Property Show 2008, which opens at the Dubai International Exhibition Centre from February 17 to 19, provides a clear indication of this trend. As the biggest transactional property exhibition in the region, IPS 2008 will attract major developers and high-value investors from around the world. It will also feature prime real estate projects from across the globe, ranging from commercial properties to high- and low-density residential developments, distinctive leisure and shopping centres as well as resorts and hotels. According to Martina...

Dubai: House prices have increased 42 per cent in Dubai between the last quarter of 2007 and the first quarter of 2008, according to a report released on Tuesday by global property consultants Colliers International. “This 42 per cent is based on the facts we received by these five financial institutions, which we have collated into this report,” John Davis, chief executive officer of Colliers Middle East, told the media at a round-table on Tuesday. “There has been a general increase in prices in Dubai in 2008, and not just for property. There has been an increase in building material prices and diesel prices and inflation. They all affect house prices,” Sadallah Abed, property analyst at Colliers, said. “Higher rents are encouraging people to buy rather than spend on renting,” Abed added. The report shows residential rental rates in Dubai average out at Dh950 per square foot, making buying property a cost-effective alternative. Colliers International yesterday launched their first House Price Index (HPI) for Dubai. Davis said the report was developed for Dubai’s residential market, to reflect the average state of growth and decline of real estate prices in the sector. Data was collected from five institutions for the HPI....