The Sofitel Hotel, overlooking bustling Abu Dhabi, was home to the International Property Investor Show from the 27th to the 28th of September 2014. Always on the lookout for new avenues to showcase our portfolio, the Knight Knox International team were excited about the potential of the event, particularly as Abu Dhabi’s property market is showing encouraging signs of growth, which meant that the guaranteed high yields of the UK investments on offer were a received well by local investors.
Knight Knox International’s stand was easily one of the most visited at the show. Visitors seemed particularly interested in the strong yields on offer, with Knight Knox International showcasing Sovereign House in Sheffield, X1 Eastbank in Manchester and X1 the Studios in Liverpool.
These three northern cities offer lucrative investment opportunities not found in other parts of the country; Knight Knox’s property in Sheffield offers annual returns of 8.72%, Manchester 7% and Liverpool up to 8%. It is not the same story in every city though. Although London’s international reputation may be more prominent than Liverpool’s, the rocketing house prices in the capital mean yields are stagnating at a disappointing 2%. When investing in the UK, choosing the right location is crucial.
It is a different story in Abu Dhabi however, where the third quarter of 2014 is finally revealing good news after years of uncertainty within the property sector. CBRE’s head of research, Matthew Green noted that “the residential sector was Abu Dhabi’s strongest performing one over the past 18 months”.
The head of Jones Lang LaSalle’s Abu Dhabi offices, David Dudley, reiterated this commenting, “All sectors of the Abu Dhabi market are now positioned in the recovery stage of their cycle”. Both may be showing optimism for the future of Abu Dhabi’s property market, however, Dudley also added that this is “for the first time since 2008”, a long six years ago.
The future may be positive for the UAE city, but a turbulent past has meant many discerning investors based in the region are still looking abroad to safer opportunities. The UK buy-to-let market has been flourishing over the recent years with LSL reporting that in the past twelve months, average returns have reached record heights thanks to rising rents.
Delighted with the outcome, Knight Knox International is now looking forward to the next exhibition, Property Guru’s International Investment show in Jakarta, Indonesia.