This Year, the Value of Real Estate Transactions Could Exceed Dh300 Billion. Because Of New Government Initiatives That Will Further Promote Market Credibility, Transparency, and Investor Confidence.
According to analysts, the government’s most recent real estate investment policies will improve investor confidence in the expanding industry. In addition, strengthen market credibility and openness. According to analysts, executives, and developers, the government’s actions, such as stricter regulations on real estate advertisements and new reporting requirements for property transactions, will stabilize a market. That attracted investments totaling more than Dh170 billion in the first seven months of this year. By year’s end, they predict that investments in the UAE real estate sector would surpass Dh300 billion.
According to market experts who cited government statistics, Dubai real estate will keep growing. Because it acquired Dh135.5 billion in investments between January and July 2022. Additionally, during the first half of 2022, property transactions totaled Dh22.38 billion in Abu Dhabi and Dh11.2 billion in Sharjah.
The UAE’s total gross domestic product (GDP), is produced by real estate operations to the tune of 5.5% annually. According to Mordor Intelligence, the UAE’s residential real estate market is projected to rise by a compound annual growth rate of over 8% between 2022 and 2027.
Confidence of Investors and Market Maturity
Recent government initiatives, according to Haider Tuaima, director of Real Estate Research at ValuStrat, will not impede the industry’s expansion. In response to a query regarding whether new reporting requirements for real estate transactions. Moreover, stringent advertising regulations may influence the sector’s growth, Tuaima responded, “Simple answer is no.
“Strengthening regulations by enforcing stricter guidelines for property listings will only strengthen market credibility and transparency, potentially boosting investor confidence moving forward.” New regulations, according to Robert Thomas, head of Agency at real estate consulting firm Core, will mature the market. The industry, he said, “would more likely mature as a result of these restrictions. Which will filter the market with qualified listings and product offerings.
More Investment Is Forthcoming
Yousuf Fakhruddin, CEO of Fakhruddin Properties, expressed similar opinions. He claimed that because of timely government action to further increase market transparency, the real estate sector would draw more investment. “The UAE has always led the way in putting policies into place to guarantee improved economic and corporate practices. We expect that the increased security provided by the new reporting standards would further increase the interest of property investors in real estate prospects,” Fakhruddin told Khaleej Times. We believe that the government’s decision to tighten regulation in the real estate industry is a good one.
“This will foster a more stable and transparent market, safeguard consumers and investors, and, over time, promote sustainable growth in the industry. The new rules represent a development for purchasers’ rights. We think this would boost investor confidence in the rental sector. Since it gives them more protection and certainty, he said.
The CEO of Zoom Property, Ata Shobeiry, concurred that the government’s policy changes would be beneficial for the industry. “I think these regulations would make it safer for both sellers and buyers to transact in the real estate market in Dubai. As a result, it will promote increased sector investment.
Drivers For Vgrowth
Various development factors, including visa reforms, consistent policies, steps to make conducting business easier. And future planning, among others, according to market experts, will continue to support an upward trend in the real estate market throughout the remainder of this year.
According to Tuaima of ValuStrat, “strategic decisions implemented by the government since 2019 help drive the property market more towards healthy. And sustainable growth by balancing supply and effective promotion in addition to the 2040 urban plan and improving market transparency by publicly disclosing transactional data.”
A number of factors will drive the market in the upcoming months, according to Shobeiry of Zoom Property, who shares confidence in the sector’s future. According to him, the property market would be significantly influenced by the “reformed visa restrictions, investor-friendly policies, as well as the stability it offers to investors” for the remainder of 2022 and beyond.
A Good Location For Investing
According to Thomas of the real estate consultant Core, Dubai’s ongoing immigration changes, pro-business and tourism atmosphere, and favorable management of Covid have made it a desirable option for both locals and foreign purchasers.
“The supply-demand dynamics are in relative equilibrium with significant transaction activity and rising occupancy levels. Dubai is a desirable investment destination since purchasers may select from a broad range of products across entry ports with property-linked visas, he added. Fakhruddin also anticipates promising futures for the real estate industry.
A number of factors that are propelling the expansion of the Dubai real estate market in a well-positioned and forward-thinking nation like the UAE. More people have been able to establish new businesses, relocate, and call the UAE home. Since it is a global nation open to welcoming citizens from any place in the world, he claimed.
“The way this nation provides for all its citizen’s needs, from lifestyle to luxury, has encouraged an upbeat attitude among foreigners looking to live and invest there. The private sector’s confidence is strengthened by the recent rise in the number of new employment and business visas, he said.