Gulf Today

UAE top choice of global property investors

- Inayat-ur-rahman, Gulf Today

DUBAI: The UAE’S real estate market is currently experienci­ng renewed vigor and momentum, which can be atributed to peaked rental and capital appreciati­on across some of the high-end properties located in the country. Real estate investment advisory firm Medallion Associates made the statement recently amid reports of strong property transactio­ns in the local sector.

The UAE’S sustained atractiven­ess lies in the market’s various unique value propositio­ns, including its intense focus on innovation­s and technologi­es and decisive and rapid actions against COVID-19. According to Medallion Associates, in spite of the difficulti­es brought about by the pandemic, domestic real estate transactio­ns have presented an upbeat market outlook.

Masood Al Awar, Chief Executive Officer, Medallion Associates, said: “Global investors with a long-term investment view and strategy have a resilient outlook for Dubai and the UAE. We atribute it to the Emirates’ investor-friendly policies, national economic growth potentials and profit landscape. Further, investors are drawn to the country’s strong economic fundamenta­ls fueled by its capabiliti­es to drive growth based on key factors such as strong job market, steady growing population, excellent infrastruc­ture, world-class healthcare and education systems, as well as an atractive tax base.”

We are confident that our role is to atract and execute real estate investment transactio­ns through the complex asset funding and financing with fund structure will stimulate new activities within the emirate’s real estate community, which will further accelerate its recovery and bolster its growth,” Al Awar revealed.

Amid the pandemic, Dubai’s real estate market posted a total of 35,600 transactio­ns worth Dhs 72 billion in 2020 compared to Dhs 82 billion in 2019--thus making the country one of the highly preferred sophistica­ted and smart investment destinatio­ns.

Furthermor­e, recent increase of villa prices in Dubai was recorded. According to a report released by Reidin, villa sales prices in the emirate have surged since September 2020. The villa segment witnessed a quarterly sales price change of 2.7 per cent and rentals also increased by 2 per cent in the last quarter of 2020. Whereas in Abu Dhabi, villa sales prices increased by 2.7 per cent quarterly, and rent prices slightly declined by 0.8 per cent. Villa sales prices, meantime, rose 2.2 per cent.

Moreover, as per the same Reidin report, Dubai’s residentia­l property market posted over Dhs 56 billion in sales volume during 2020, with a total value of ready property transactio­ns exceeding AED 34 billion in the same year. This is 13 per cent higher than what was posted in 2019. The residentia­l transactio­n value in Dubai’s ready property market remained at Dhs 1.2 million per transactio­n while the average transactio­n price in the off-line property market declined to Dhs 1.1 million in 2020. With this, the ready property transactio­ns in Dubai and Abu Dhabi slightly increased by 2 per cent compared to 2019.

Al Awar also noted: “Even during the toughest of times, the real estate market in Dubai and the UAE in general continued to atract investors from Europe and the United States as global migration movement is picking pace. These investors want four key drivers to relocate, which are macroecono­mic stability, safety and security; modern infrastruc­ture; higher living standards; and economic policy consistenc­y.”

The tourism sector, a pillar of Dubai’s non-oil economy, is also driving the developmen­ts in the real estate sector. Almost 1.1 million tourists visited Dubai ater the lockdown was lited in July up until November last year, bringing the total visitors to enter the country to 4.9 million between January and November 2020.

Furthermor­e, the recent historic decision of the UAE Government offering citizenshi­p to eligible foreigners is a welcome developmen­t for the country’s real estate segment. The new policy, which is enacted to atract more talents who can contribute to the country’s progress, will positively impact the market with the subsequent entry of more prospectiv­e property investors.

Real estate is seen to benefit as well from the government’s stimulus packages to be rolled out in 2021, especially in Dubai.

In addition, for 2021, it has been revealed that the total government expenditur­e is set at AED 57.1 billion, with 41 per cent allocated for infrastruc­ture and transporta­tion, 31 per cent for social developmen­t and 22 per cent for security, justice and safety. Senior officials from Medallion Associates have pointed out that these investment­s will likely boost the real estate sector, bringing it into a whole new level of competitio­n in the regional and global market.

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