Investors should trust the UAE real estate market with more investments

Recent government measures on real estate investment will increase market credibility and transparency and boost investor confidence in this growing sector, experts say.

Analysts, executives and developers said government action such as introducing new reporting requirements for real estate transactions and tightening rules on property listings will bring stability to the market which has already attracted investments worth more than 170 billion dirhams in the first seven months of this year. They expect investments in the UAE real estate market to exceed 300 billion dirhams by the end of the year.

Referring to official statistics, market experts said that Dubai real estate will continue to drive growth in the sector as it attracted Dh135.5 billion in investment during the period January-July 2022. Besides, Abu Dhabi and Sharjah also registered Dh22.38 billion and Dh11. 0.2 billion real estate transactions, respectively, in the first half of 2022.

It is estimated that real estate activities generate around 5.5% of the UAE’s overall Gross Domestic Product (GDP) every year. The UAE residential real estate market is expected to post an overall compound growth rate of more than 8% between 2022 and 2027, according to Mordor Intelligence.

Haider Tuaima, director and head of real estate research at ValuStrat, said recent government measures will not slow the growth of the sector.

“The simple answer is no,” Tuaima said in response to a question about new reporting requirements for real estate transactions and tighter advertising rules could impact industry growth.

“Improving regulation by tightening property listing rules can only increase market credibility and transparency, it potentially boosts investor confidence in the future,” he said.

Robert Thomas, head of the agency at property consultancy Core, said further moves would bring maturity to the market.

“No, on the contrary, we expect it to further mature the market and these regulations will filter the market with qualified listings and product offerings,” he said.

Yousuf Fakhruddin, CEO of Fakhruddin Properties, echoed similar views and said the real estate sector will attract more investment due to timely government action to further improve market transparency.

“The UAE has always been at the forefront of implementing measures to bring out and encourage better economic and trade practices. The new reporting requirements make it a safer environment for real estate investors, which we hope will further boost their interest in real estate opportunities,” Fakhruddin said. Khaleej times.

In our opinion, he said that the government’s decision to increase regulation in the real estate sector is positive.

“This will help protect buyers and investors and create a more stable and transparent market and, in the long term, will encourage sustainable growth in the sector. The new regulations are a positive step forward for buyers’ rights. It provides more clarity and protection for investors, and we believe this will lead to increased confidence in the rental market,” he said.

Ata Shobeiry, CEO of Zoom Property, also welcomed the government’s policy measures and said it would benefit the sector.

“I believe these requirements will make the Dubai property market safer for both sellers and buyers. Therefore, it will encourage more investment in the sector,” he said.

Market experts said that the real estate market will maintain an upward trend in the remaining part of this year due to various growth drivers such as visa reforms, consistent policies, ease of doing business measures and the future planning, among others.

“Strategic decisions implemented by the government since 2019, balancing supply and stimulating demand in addition to the 2040 urban plan and improving market transparency by openly sharing transactional data, all contribute to driving the real estate market towards healthier and more sustainable growth,” ValuStrat’s Tuaima said.

Zoom Property’s Shobeiry is also confident in the future of the market and said various factors will drive the market in the coming months.

“The reformed visa rules, investor-friendly policies and the stability they provide to investors are major factors that will drive the real estate market through 2022 and beyond,” he said.

Thomas or property consultancy Core said Dubai’s continued positive management of Covid, the business and tourism-friendly environment and ongoing visa reforms have made it an attractive proposition for residents and international buyers alike. .

“With strong transaction activity and rising occupancy levels, the supply-demand dynamic is at relative equilibrium. Additionally, buyers have the flexibility to choose from a wide range of products through entry points with property-related visas, making Dubai a favorable investment destination,” he said.

Fakhruddin also sees bright prospects for the property sector ahead.

“In a perfectly positioned and progressive country like the UAE, there are many growth drivers for Dubai’s real estate sector. The fact that the UAE is a global nation ready to welcome people from any country in the world has made it possible for more people to start new businesses to move here and live here,” he said. declared.

“The way this country offers everything from lifestyle to luxury for residents has fostered an optimistic and contented feeling among expats wishing to live and invest in the country. The recent increase in the number of new business and employment visas in the private sector reinforces the belief system for the real estate sector,” he said.

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