More investors will illustrate their trust in the UAE property market
This Year, the Value of Real Estate Transactions Could Exceed Dh300 Billion Because Of New Government Initiatives. Therefore, That Will Further Promote Market Credibility, Transparency, And Investor Confidence.
According to analysts, executives, and developers, government initiatives like stricter regulations on real estate advertisements and new reporting standards for property sales could well stabilize a market that attracted investments totaling more than Dh170 billion in the first 7 months of 2022. They expect that by year’s end, investments in the UAE real estate industry will surpass Dh300 billion.
Dubai’s property market will continue to boom as per to market experts. Because, between January and July 2022, it drew investments totaling Dh135.5 billion. Additionally, during the 1H of 2022, property transactions in Abu Dhabi and Sharjah totaled Dh22.38 billion & Dh11.2 billion, respectively.
UAE’s annual gross domestic product (GDP) is thought to be generated by real estate operations to the tune of 5.5%. Mordor Intelligence predicts that 2022-2027; the UAE’s residential property market will expand at a compound annual growth rate of above 8%.
Market Maturity and Investor Confidence
According to Haider Tuaima, director and head of Real Estate Research at ValuStrat, recent government initiatives will not impede the industry’s growth. When asked whether the sector’s expansion may be impacted by new reporting requirements for real estate transactions. Moreover, stringent advertising regulations, Tuaima responded, “The short answer is no.” According to Tuaima, “improving regulations by tightening limits on property marketing will only strengthen market credibility and transparency, potentially boosting investor confidence moving forward.”
According to Core’s director of Agency Robert Thomas, the market will mature because of the new regulations. He stated, “We think that it will accelerate market maturation and that these constraints will filter the industry with acceptable offerings.”
More Investment Is About To Come
Due to prompt government action to further increase market openness, the real estate sector will draw additional investment. The UAE has always taken the lead when it comes to putting policies into place to guarantee improved economic and commercial practices. For property investors, the climate is made even more secure by the new reporting requirements. Which, ideally, will increase their interest in real estate investment prospects. It is a good thing that the government is taking steps to improve regulation in the real estate industry.
Buyers and investors will be better protected, the market will be more stable and transparent, and the industry will eventually see sustainable growth. The new rules represent a development for purchasers’ rights. We think this will boost investor trust in the rental market since it gives them more protection and clarity.
The CEO of Zoom Property, Ata Shobeiry, praised the government’s policy changes and predicted positive effects for the industry. These restrictions, in my opinion, would improve the safety for buyers and sellers. As a result, greater investment in the industry would be encouraged, he stated.
Market experts predicted that the real estate market would continue to trend upward for the remainder of this year. Just because of several development drivers, including among others visa reforms, consistent policies, and initiatives. In addition to the 2040 urban plan, the government has implemented strategic measures since 2019 that balance supply and increase demand. While also increasing market transparency by disclosing transactional data. All contribute to the real estate market’s movement toward more robust and long-term growth.
Dubai’s pro-business and tourism environment, as well as continuous immigration reforms, have made it an appealing option for investors. The supply and demand dynamics are in a state of near equilibrium, thanks to high transaction activity and rising occupancy levels. Furthermore, purchasers can select from a diverse range of products across multiple entry ports with property-linked visas, making Dubai an appealing investment destination. There are numerous development drivers in the Dubai property business. The UAE is a cosmopolitan nation that welcomes visitors from all around the world.