Dubai property sector gains pace bucking global trends
The Dubai property sector is on a solid growth track and is marching ahead bucking the global trends. Optimism for 2020 is based on many concrete factors and facts not just hopes and morale, as it is based on some positive indicators that can be built upon in the future.
This was echoed by a leading Real estate expert and chairman of the board of directors of W Capital Real Estate Brokerage Company, Walid Al Zarouni, during an exclusive interview with Gulf Today.
He identified ten positive factors and indicators that call for optimism in the real estate sector during 2020. These indicators will pave the way for a new stage of growth and a new reality for this sector, which is considered one of the largest and most important sectors driving Dubai economy.
He said that the first factor is the issuance of January 4th document announced by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, which contributed greatly in spreading a spirit of optimism, enhancing confidence and spreading reassurance in all economic sectors, including the real estate sector in all its parts. He added that the second factor is the anticipated momentum accompanying the organization of “Dubai Expo 2020” exhibition, which will enhance the demand for real estate and raise confidence in the business of real estate investors.
While the third factor included the easy conditions for buying real estate and the facilities provided by developers that will help in attracting new residents to the state during the coming period, along with the current focus of real estate developers to provide competitive offers through easy payment plans, which contributes to the local real estate market.
The fourth factor in the total real estate laws, legislations, regulations and incentives for the real estate sector came more influential in the performance of this vital sector that will enhance demand in the sector during the current year, in addition to activating more smooth laws on real estate ownership, which initiatives have left a positive impact on real estate investors on the future of the sector. He pointed out that the fifth factor is represented by recent studies and reports issued by government agencies or from private research centers regarding positive expectations that the real estate sector will achieve its recovery in its growth indicators with a state of optimism on a large scale with the countdown to host the Expo, where Dubai managed to pass a road full of accomplishments for the sake of this global dream will all be positive and stimulating to achieve high growth rates in light of the positive correlation between organizing and increasing the rates of demand for real estate units of various categories; residential, commercial or administrative.
A report by Dubai Economy expected that the current year will witness a 3.6% growth in the real estate sector. The report stated that Emirati investors topped the list of investors in the Dubai real estate market during the year 2018, with investments of about Dhs10 billion, due to the continuous increase in the population of citizens and the increase in the supply of real estate in the market, especially residential real estate.
He pointed out that the sixth factor comes in light of the great potential provided by the real estate market in Emirates in general, and Dubai in particular, to attract more local and foreign investments while providing liquid and flexible investments in real estate, with tax benefits, without complications and transaction costs involved in direct ownership of the property.
He added that the seventh factor is achieved as a result of what Dubai possesses of huge qualifications to help it regain its strength quickly, as the infrastructure and logistics in Dubai are characterized by high quality, which is the best in the region, in addition to the services and infrastructure of the most advanced communication networks that provides excellent services to a broad spectrum of clients and multinationals. The eighth factor is the population growth in the UAE in general and Dubai in particular as it’s among the highest in the world, due to migration.
According to population statistics and expert expectations, Dubai is on the verge of a major urban boom during the next few years, driven by increased population growth, an influx of expats, and a rise in tourism.
The ninth factor is the population growth in the UAE in general and Dubai in particular among the highest in the world, due to migration. According to population statistics data, and according to expert expectations, Dubai is on the verge of a major urban boom during the next few years, driven by increased population growth, an influx of expats, and a rise in tourism.