According to Medallion Associates, the UAE’s real estate market is experiencing a renewed momentum of growth and vigor. The country’s attractiveness lies in the unique propositional value of the market and its intense focus on innovation and technology. Similarly, its rapid and decisive approach to COVID-19 is also one of the reasons why global property investors favor the UAE.
The report also states that these factors lead to peaked rental and capital appreciation across high-end properties in the country. There were also strong domestic real estate transactions amidst the pandemic despite the difficulties it brought.
Masood Al Awar, CEO of Medallion Associates said, “Global investors with a long-term investment view and strategy have a resilient outlook for Dubai and the UAE. We attribute it to the Emirates’ investor-friendly policies, national economic growth potentials, and profit landscape. Further, investors are drawn to the country’s strong economic fundamentals fuelled by its capabilities to drive growth based on key factors such as a strong job market, steady growing population, excellent infrastructure, world-class healthcare and education systems, as well as an attractive tax base.”
Growth in the real estate market
Despite the pandemic, Dubai’s real estate market generated a total of 35,600 transactions worth 72 billion AED in 2020. Additionally, Reidin reported an increase in villa sales prices since last year. The segment witnessed a quarterly price change of 2.7% while rental prices increased by 2%. In Abu Dhabi, however, villa sales prices increased 2.7% quarterly while rent prices declined by 0.8%.
According to the same report, the residential property market gained a 13% increase with a total value of ready property transactions exceeding 34 billion AED. The residential transaction value remained at 1.2 million AED per transaction while the average price in the off-plan property market declined to 1.1 million AED. With this, the ready property transactions in Dubai and Abu Dhabi slightly increased by 2% compared to 2019.
Al Awar also noted that the real estate market continued to attract investors from Europe and the United States even during the toughest of times. According to him, there are four key drivers for investors to want to relocate – 1. Macroeconomic stability, safety, and security, 2. Modern infrastructure, 3. Higher living standards, and 4. Economic policy consistency.
Furthermore, the tourism sector is also driving the developments in the real estate market. Almost 1.1 million tourists visited the country after the lockdown was lifted in July until November last year, bringing the total number of visitors to enter the country to 4.9 million.
The real estate industry also anticipates the recent decision of the UAE government to give citizenship to eligible foreign nationals. The new policy has already started to attract more talents who can contribute to the country’s progress to consider moving to the country and investing. This will positively impact the market with the future entry of more prospective property investors.
In addition, 41% of the total government expenditure for 2021 is allocated for infrastructure and transportation, 31% for social development, and 22% for security, justice, and safety. These investments will likely boost the real estate market which will bring the UAE to a whole new level of regional and global market competition.
source: https://www.gulftoday.ae/business/2021/04/18/uae-top-choice-of-global-property-investors