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Dubai and Abu Dhabi property markets continue to attract foreign investment as investor confidence rises
The Dubai real estate industry continues its upward trend and is expected to grow further in the coming months as demand for luxury villas as well as condominiums and townhouses in prime locations grows. — file photo
The UAE real estate market has seen significant growth this year as global investors trust the UAE for its successful strategy to tackle the Covid-19 pandemic, coherent economic policies, excellent infrastructure, visa and business reforms, by investing more in the real estate sector, Especially in the luxury segment, which attracts a lot of investment.
The UAE attracted more than AED170 billion in investment in the real estate sector in the first seven months of this year, and despite government efforts to cool the sector, the growth momentum has not slowed. The Dubai real estate industry continues its upward trend and is expected to grow further in the coming months as demand for luxury villas as well as condominiums and townhouses in prime locations grows.
In the first half of 2022, the Dubai real estate market recorded over 43,000 real estate transactions worth AED115 billion. These impressive numbers represent a whopping 87% increase compared to the first half of last year. In particular, June 2022 proved to be a record month with nearly 8,900 sales transactions. The total value of these transactions was recorded at AED 22.75 billion.
Likewise, the Abu Dhabi real estate market made up for lost ground in the first half of 2022 and recorded 7,474 real estate transactions worth AED 22.38 billion between January 2022 and June 2022, a significant increase compared to 2021 increase.
The above data shows that the real estate sector in Dubai and Abu Dhabi in general is generating favourable results for the UAE economy.
Foreign investment drives real estate market
As far as the real estate sector in the UAE is concerned, Dubai receives a lot of foreign investment. The Abu Dhabi real estate market has also received its fair share of foreign investment with the launch of new residential and commercial developments in the capital city.
Statistics show that Russia, Ukraine and the UK are among the main countries investing in the Dubai and Abu Dhabi real estate markets. Apart from this, investors from India, Pakistan, Canada, Italy and France have also invested heavily in the two emirates.
Investor- and expat-friendly policies and strong resilience to a global recession are two of the main reasons that attract foreign investors and HNWIs to these real estate markets. On top of that, investors are keen to get luxury deals. Dubai alone recorded 82 ultra-prime property transactions in the first half of the year, paving the way for a record year for such transactions.
Reform of visa rules
The reformed UAE visa rules have also contributed to the growth of the UAE real estate market. These modifications make it relatively easy for investors to make real estate investments and obtain a gold or silver visa due to the relaxation of the conditions set for these visa types.
The purpose of these visa relaxations is to make it easier for foreign investors to enter the UAE real estate market. Recent statistics show that the authorities have been completely successful in achieving this goal.
Expo effect
Expo 2020 has opened its doors to visitors as the world is reeling from the effects of the novel coronavirus, but Dubai has set an unprecedented example by hosting the expo successfully. These benefits are known to extend to other emirates and industries as well. The success of this event has enhanced the confidence of global investors in Dubai.
It’s been almost six months since Expo 2020 came to a close. However, Dubai continues to benefit from this gigantic event. Now that Expo City will welcome residents and businessmen in a few months, the development of the real estate industry can be expected.
For the uninitiated, it will be Dubai’s futuristic-centric mini-city, located in the same location as the Expo 2020 site.
New Property Advertising Guidelines
To make it safe for everyone to invest in Dubai, the DLD has recently released updated real estate advertising regulations. While this is a step in the right direction, many believe it could affect the performance of the housing market.
However, I believe this move will strengthen the market’s position as a safe place for investors and even end users. They will know that the attribute contains all the elements it advertises. As a result, real estate portals will only receive genuine inquiries that have a high chance of turning them into sales transactions.
Ata Shobiry is the CEO zoom property. The views expressed are his own and do not reflect the policy of the newspaper.
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