Real estate in the UAE set to gain momentum – News
Dubai and Abu Dhabi property markets continue to attract foreign investment as investor confidence rises
Dubai’s real estate sector continues its upward trend and is expected to gain momentum in the coming months due to growing demand for luxury villas as well as apartments and townhouses in prime locations. — File photo
The UAE real estate market has seen remarkable growth this year as global investors have come to trust the emirate’s successful strategy against the Covid-19 pandemic, consistent economic policies, excellent infrastructure, to visa and business reforms by investing more in the real estate sector, especially in the luxury segment which has attracted significant investment.
The emirate has attracted more than 170 billion dirhams of investment in the real estate sector in the first seven months of this year and there is no slowing in the growth momentum despite the government’s efforts to cool the sector . Dubai’s real estate sector continues its upward trend and is expected to gain momentum in the coming months due to growing demand for luxury villas as well as apartments and townhouses in prime locations.
The Dubai property market recorded over 43,000 real estate transactions worth 115 billion dirhams during the first half of 2022. These remarkable figures show an increase of up to 87% compared to the first half of the year former. June 2022, in particular, turned out to be a record month with nearly 8,900 trade transactions. The combined value of these transactions was recorded at 22.75 billion dirhams.
Along the same lines, the Abu Dhabi real estate market also covered lost ground during the first half of 2022 and responded by registering 7,474 real estate transactions worth Dh22.38 billion over the course of 2022. the period from January to June 2022, marking a significant growth compared to 2021. .
The aforementioned figures show that the real estate sectors of Dubai and Abu Dhabi are on track to produce favorable results for the UAE economy as a whole.
Foreign investment drives the real estate market
Dubai receives a significant share of foreign investment when it comes to real estate sectors in the UAE. The Abu Dhabi property market is also receiving its fair share of interest from foreign investment with the launch of new residential and commercial developments in the capital.
Statistics reveal that Russia, Ukraine and the UK are among the top countries investing in the Dubai and Abu Dhabi property markets. In addition to this, investors from India, Pakistan, Canada, Italy and France have also made significant investments in these two emirates.
Investor and expat friendly policies and strong resilience in the face of the global recession are two of the main reasons attracting foreign investors as well as HNWIs to these real estate markets. On top of that, investors are eager to close deals for luxury properties. Dubai alone saw 82 deals for ultra-prime properties in the first half, setting the stage for a record year for such deals.
Reform of visa rules
The reformed UAE visa rules have also contributed to the growth of real estate markets in the UAE. These changes have made it relatively easier for investors to make a real estate investment and obtain a gold or silver visa since the conditions set for these types of visas have been relaxed.
The objective behind these visa relaxations was to make the UAE real estate market more accessible to foreign investors. And recent statistics show that the authorities have been fully successful in achieving this goal.
The exhibition effect
Expo 2020 opened to visitors as the world reeled from the effects of the novel coronavirus, but Dubai set an unprecedented example in successfully hosting it. The benefits, as we all know, have also spread to other emirates and sectors. The successful handling of this event showed the enhanced confidence of global investors in Dubai.
It’s been almost six months since Expo 2020 closed its curtains. Yet Dubai continues to benefit from this flagship event. And now that Expo City is ready to welcome residents and business people in a few months, we can expect a boost in the real estate sector.
For the uninitiated, it will be a future-centric mini-city in Dubai, located in the same location where Expo 2020 was held.
New guidelines for property listings
In an effort to make investing in Dubai safe for everyone, DLD recently released updated regulations for real estate advertising. Although this is a step in the right direction, many believe it can affect the performance of the real estate market.
However, I believe that this initiative will strengthen the position of the market as a safe place for investors and even end users. They would know that the property contains all the items it is advertised for. Thus, only genuine queries will be received by real estate portals, which have a high chance of converting them into a sales transaction.
Ata Shobeiry is Managing Director of Zoom property. The opinions expressed are his own and do not reflect the policy of the newspaper.