{"id":52003,"date":"2017-04-16T20:27:50","date_gmt":"2017-04-16T13:27:50","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/?p=52003"},"modified":"2017-04-16T18:56:07","modified_gmt":"2017-04-16T11:56:07","slug":"reits-offer-efficient-way-to-own-uae-properties-without-the-hassle","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/reits-offer-efficient-way-to-own-uae-properties-without-the-hassle\/","title":{"rendered":"Reits offer efficient way to own UAE properties without the hassle"},"content":{"rendered":"


\nReal estate and construction are regarded as global drivers of economic growth and critical sources of employment. In western Europe, where slower economic growth and political uncertainty have squeezed transaction volumes and prices, over-weighted ownership of real estate assets is increasingly seen as a risk.Even in the United States, where the real estate market has continued to perform well, some industry observers are wary of the sector’s long-term prospects. As a result, a significant number of real estate assets have been spun into listed vehicles that allow individual investors access to real estate portfolios without owning underlying assets. In the UAE, real estate investment trusts (Reits) are increasingly considered an attractive prospect, pooling advantages such as investment diversification and expert investment counsel – normally available only to institutional investors – for individual investors. Reits, if managed properly, could have the characteristics that local investors appreciate – a steady income, high yields, moderate risk and linked to property. Despite housing some world-class residential and commercial properties, the UAE’s property market – and Dubai in particular – remains under-resourced in terms of investment grade products. Reits, therefore, could be an attractive prospect for retail investors seeking fresh UAE property opportunities. The launch of the UAE’s first ever residential Reit, Emirates Reit, a Sharia-compliant model with a seed portfolio of Dh418 million, was a welcome step for the sector. Then in March, Emirates NBD Asset Management floated a Reit listed on Nasdaq Dubai and raised US$105 million. And, last week, Abu Dhabi Financial Group announced plans to launch the UAE’s third Reit by the year’s end.Singapore has a much bigger Reit sector. Investors tend to be attracted to Reits by their dividend yields and, according to Bloomberg, Singapore Reits offer average yields of more than 6 per cent. This suggests that, despite slower economic growth, Singapore’s yields have remained relatively strong even as returns on assets have not necessarily been. A critical factor that accelerated the growth of Reits in Singapore was the introduction of a clear regulatory framework and government support. Reits have strong foundations, which tend to create a conducive environment, promoting their attractiveness among domestic and international investors. Singapore Reits even allow investors to own international property, further diversifying investment portfolios and reducing market contagion risks. Several countries have expressed great interest in Reits. A number of new Reit regimes have been introduced recently, with India entering the market in 2014. For the UAE’s real estate market, Reits could represent significant growth. Two key possible drivers – the hedging of risk and portfolio diversification – help to increase appeal for investors. For investors seeking tax-efficient, liquid and transparent vehicles, Reits might be the answer. Buying shares in a Reit makes investors a partial owner of the properties – and a partial owner of an operating business that manages properties for profit. A further benefit of Reits may be their ability to generate higher income over the longer term. Generally, real estate prices are not correlated with stock prices, therefore, Reits provide diversification. Since Reit shares are traded on stock exchanges, buying and selling is straightforward. The appeal of Reits is not limited to retail investors. They improve asset owners’ liquidity, broaden the investor base, facilitate equity financing and add value in the underlying real estate investment.Dubai – and the wider UAE property market – is well placed to reap the benefits of Reits. Dubai’s real estate sector could be on the brink of a significant shift, partly driven by demand for Reits. Sidharth Mehta is a partner and the head of building, construction and real estate at KPMG Lower Gulf.business@thenational.aeFollow The National’s Business section on Twitter
\n
\nSource : thenational.ae
\nRead more…Reits offer efficient way to own UAE properties without the hassle<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Real estate and construction are regarded as global drivers of economic growth and critical sources...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-52003","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-dwL","jetpack-related-posts":[{"id":49821,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/more-real-estate-investment-trusts-expected-in-uae\/","url_meta":{"origin":52003,"position":0},"title":"More real estate investment trusts expected in UAE","date":"March 27, 2017","format":false,"excerpt":"\r The asset manager behind the UAE's second listed real estate investment trust expects more to follow.Emirates NBD Asset Management listed ENBD Reit on Nasdaq Dubai last week.\"There is room in the UAE for ten or twenty reits,\" said Anthony Taylor, fund manager of real estate for Emirates NBD Asset\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":153261,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/understanding-reits-a-guide-to-real-estate-investment-in-the-uae\/","url_meta":{"origin":52003,"position":1},"title":"Understanding REITs: A guide to real estate investment in the UAE","date":"May 13, 2025","format":false,"excerpt":"\r As Dubai prepares for its first pure-play residential REIT listing, investors might be seeking clarity on how these investment vehicles work and why they're gaining popularity - here's everything you need to know\r \r Source : arabianbusiness.com\r Read more...Understanding REITs: A guide to real estate investment in the UAE","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i2.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2025\/05\/Dubai-city-view-1000x667-2.jpg?fit=1000%2C667&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":57522,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/viceroy-dubai-developer-to-launch-dh2-1-billion-hospitality-reit\/","url_meta":{"origin":52003,"position":2},"title":"Viceroy Dubai developer to launch Dh2.1 billion hospitality Reit","date":"June 12, 2017","format":false,"excerpt":"\r The developer behind two Viceroy hotels in Dubai has said that it is launching a Dh2.1 billion real estate investment trust (Reit).Five Holdings, the company previously known as Skai Holdings, has said that the trust will be the first hospitality-focused Reit to launch in the region, and the biggest\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":51721,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/abu-dhabi-financial-group-plans-flotation-of-dh3-billion-reit-this-year\/","url_meta":{"origin":52003,"position":3},"title":"Abu Dhabi Financial Group plans flotation of Dh3 billion Reit this year","date":"April 13, 2017","format":false,"excerpt":"\r Abu Dhabi Financial Group (ADFG), an alternative investment company with US$5 billion in assets, plans to float a real estate investment trust by the end of the year.In a statement the company said that it had set up its own it comprising 10 properties.ADFG, which made headlines over the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":32441,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/emirates-reit-owner-equitativa-to-build-up-assets-in-abu-dhabi-property-funds\/","url_meta":{"origin":52003,"position":4},"title":"Emirates Reit owner Equitativa to build up assets in Abu Dhabi property funds","date":"October 31, 2016","format":false,"excerpt":"\r The company behind the UAE's first real estate investment trust (Reit) in Dubai is pressing ahead with plans to launch new property funds in Abu Dhabi and looking to expand its model to Saudi Arabia.Equitativa Real Estate, the umbrella company that owns the Reit manager for Nasdaq Dubai-listed Emirates\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":29661,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/rak-clears-equitativa-to-invest-onshore-in-emirate\/","url_meta":{"origin":52003,"position":5},"title":"RAK clears Equitativa to invest onshore in emirate","date":"October 12, 2016","format":false,"excerpt":"\r The company behind the UAE's first real estate investment trust (Reit) is finalising plans for a series of new funds after the Government of Ras Al Khaimah allowed it to invest in onshore property in the emirate. According to Equitativa Real Estate, the umbrella company that owns the Reit\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/52003"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=52003"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/52003\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=52003"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=52003"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=52003"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}