NewsUAE real estate set to gain further momentum

UAE real estate set to gain further momentum

The UAE real estate market staged a remarkable growth this year as the global investors reposed trust in the emirate’s successful strategy against the Covid-19 pandemic, consistent economic policies, excellent infrastructure, visa, and business reforms by investing more in the property sector, especially in the luxury segment that attracted significant investment.

The emirate has attracted more than Dh170 billion investment in the real estate sector during the first seven months of this year and there is no slowdown in growth momentum despite the government’s efforts to cool down the sector. Dubai real estate sector continues its upward trend and is expected to gain further momentum in months to come on the rising demand for luxury villas as well as apartments and townhouses in prime locations.

The Dubai property market recorded more than 43,000 real estate transactions worth Dh115 billion during the first half of 2022. These remarkable figures show an increase of up to 87 per cent as compared to the first half of the preceding year. June 2022, in particular, proved to be a record-breaking month with nearly 8,900 sales transactions. The combined value of these transactions was recorded to be Dh22.75 billion.

On a similar note, the Abu Dhabi property market also covered the lost ground during the first half of 2022 and responded by recording 7,474 real estate transactions worth Dh22.38 billion during the period from January to June 2022, marking significant growth as compared to 2021.

The aforementioned figures show that Dubai and Abu Dhabi’s real estate sectors are on the course of producing favourable results for the UAE economy on the whole.

Dubai receives a major chunk of foreign investment when it comes to real estate sectors across the UAE. The Abu Dhabi property market also gets its fair share of interest in foreign investments with the launch of new residential and commercial developments in the capital city.

Statistics reveal that Russia, Ukraine, and The UK are among the top nations investing in Dubai and Abu Dhabi property markets. Besides that, investors belonging to India, Pakistan, Canada, Italy, and France have also made significant investments in both these emirates.

“Dubai alone recorded 82 deals for ultra-prime properties in the first half, paving the way for a record year in terms of such deals.

Investor and expatriate-friendly policies and a strong resilience against the global recession are two major reasons attracting foreign investors along with HNWIs to these property markets. Besides that, investors are keen to secure deals for luxury properties. Dubai alone recorded 82 deals for ultra-prime properties in the first half, paving the way for a record year in terms of such deals.

The reformed UAE visa rules have also contributed to the growth of the property markets in the UAE. These modifications have made it comparatively easier for investors to make a real estate investment and obtain a golden or silver visa since the conditions set for these visa types have been relaxed.

The aim behind these visa relaxations was to make the UAE property market more accessible to foreign investors. And recent statistics show that the authorities have been fully successful in achieving this aim.

In a bid to make investing in Dubai safe for everyone, DLD issued updated regulations for property advertisement recently. While it’s a step taken in the right direction, many believe it can have a dent in the performance of the real estate market.

However, I believe this initiative will strengthen the market’s position as a safe place for investors and even end-users. They would know that the property contains all the elements that it’s advertised for. So, only genuine queries will be received by the property portals, which have high chances of converting them into a sales transaction.

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HL Group

Excelling the boundaries in developing exquisite real estate apartments and hospitality residents, Mr. Hussain Al Abbas Lootah has embarked on a level of professionalism since 1992 in adopting a conceptual forte in recognising market growth potential in the UAE.