UAE remains popular despite the risks

The UAE is still a popular choice for property investors despite increasing risks, it has been claimed.

A new report carried out by property company FutureBrand Gulf Real Estate showed that 63 per cent of survey respondents said that they are still likely to invest in the region because it offers good "value for money".

The confidence shown exists despite research showing that a lack of trust in developers has had a negative impact on the market.

According to the report, factors such as the potential to lose money and awareness of loopholes and corruption in the emirate should mean that homebuyer confidence will weaken, but buyers' attitudes seem to remain unchanged.

Abu Dhabi is recommended as the region best placed to lead the real estate recovery.

"With its financial strength and its rise as a destination of note … it is poised to be the first place in the region to attract foreign investment and partnership opportunities in the future, should the emirate seek these," the reports says.

REDIN.com has launched a Sales and Price Index for the region with the aim of becoming a benchmark for property data.