Experts predict Dubai’s real estate sector will continue to be a popular investment destination for various interested parties.
Hamid Shabir Khawaja, co-founder and chief commercial director of Footprint Real Estate, says real estate deals hit new heights, including off-plan properties, just before Expo 2020.
“This momentum is sustained as more investors, developers, and even tourists, are keen on venturing in a vibrant place like Dubai,” he said. “Expo 2020 is contributing to the market growth as it does not just gather potential buyers and investors in one place, but it also adds attractiveness to Dubai’s landscape as a global business hub. We are expecting this market growth to continue, as we see an influx of visitors, industry leaders, their representatives, and potential investors during the six-month-long global event.
“Adding in other factors such as a change in preferences and lifestyle, flexible foreign ownership regulations, and attractive economic landscape, and we believe that the UAE’s real estate will continue to flourish in the coming years,” he predicted. “The government’s exemplary handling of the Covid-19 pandemic, flexible laws and regulations, global events such as Expo 2020, and a diverse and strong economy, are also important factors.”
Khaawaja noted that the “recovery period” is now bringing back both foreign and local investors. “Real estate in the UAE has bounced back this year, and even the luxury property market experienced substantial growth. Despite the recent challenges, Dubai is still one of the top destinations for foreign real estate investments. In fact, earlier this year it was announced that 100 percent business ownership for DED mainland license will be given to foreign investors. In essence, it is meant to facilitate the development of business performance in the nation so as to attract more investments.”
Khawaja explains that the pandemic forced the company to change its strategy slightly to attract investors. “One of the major challenges we faced in the international market is maintaining relations with foreign investors and developers amid communication restraint. Now that we are recovering slowly, we are back on track as recorded in our sales transactions for Q3 this year. Foreign investments are important, but we also need to give equal focus to the local market.”
A good internal investment strategy provides greater returns, he said. “Our local market has numerous major developers, and we are using that as another competitive edge. Notably, end users have also increased to 80 percent for ex-pats and up to 100 percent for locals due to the loan to value ratio, as banks have been highly supportive in lending loans.”
According to him, Dubai has maintained its ranking as one of the world’s top three property investment destinations, and this ranking will be maintained, or Dubai will climb higher on that list.
“Dubai, with its robust and growing infrastructure, continues to attract not just tourists, but most importantly investors and developers,” he said. “Thanks to the UAE government’s initiatives in diversifying the economy and ensuring that the country is attractive to foreign investors, Dubai’s real estate sector remains competitive globally. We have consistent government spending, progressive policy on economic diversification, increased foreign direct investments (FDI), strong financial reserves, and large sovereign wealth funds, among others. The UAE is also in a very strategic location as it connects regional and international trades, and the established world-class free zones are also contributing to business attractiveness.”