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Dubai’s real estate market going upward: new laws to support

26.06.2018
Dubai’s real estate market going upward: new laws to support

Experts explain why foreign investors are attracted to Dubai, and why we should expect an upward trajectory for further market development. Read more to find which new law is going to be one of the pillars for further growth. 

Over the last years, the Dubai property market has been a magnet for international property buyers.

With foreign investors finding that the UAE real estate sector is a business-friendly market with low taxes and world-class infrastructure, the Dubai Land Department (DLD) has unveiled plans for a new mortgage and finance law to bring extra foreign financial support to the UAE’s real estate industry.

The mortgage law is going to turn local market into even more lucrative option for international investors and public joint stock companies listed on Nasdaq, while also to encourage alternative financing models.

And what’s even more important, is that the law would cater to investors with small and medium-sized portfolios.

Matthew Bate, CEO of Engel & Völkers Dubai explains why such laws are important for further growth, and where the market is headed.

How many international investors are attracted to Dubai now?

“Foreign investments make up at least 20% of the emirate’s real estate market, demonstrating a significant share of the market as compared to the other countries within the region. The market share translates to around USD41.1bn of investments made by international investors coming from the KSA, India and the UK, to name a few,” Bate comments.

According to DLD’s statistics, Indian investors accounted for over $5.55bn in sales value over the last 18 months, followed by Pakistani nationals with over $1.9bn invested from January of 2016 to June of last year.

Among main factors attracting investments, there are enhancements made to real estate processes having made them more transparent and faster, including strategic programs and initiatives that have helped reinforcing the reputation of the emirate’s prime development projects in the international markets.

What is your forecast for the real estate market compared to 2017?

“The upward trajectory noticeably jumped during the second half of 2017, especially across the luxury real estate segment,” said Matthew Bate.

The growth is expected to surge even further closer to Dubai Expo 2020, as plenty of major developments are rolled out.

“We are seeing increased preference for the local luxury segment, which is evident in the high number of transactions during the first quarter of the year across well-known luxury community development projects like Al Barari, Emirates Hills, Palm Jumeirah and Jumeirah Islands. In line with this, we are looking at a continuous increase in transactions within this segment, as more attractive opportunities are expected to be offered to investors in 2018,” he added.

Last year, over 69,000 real estate transactions worth around USD77.5bn in total were conducted at the Dubai’s property market. Today’s forecasts as for the number of transactions expected, is rather more moderate, but the rest of the year will show.

As compared to the previous year, some developers are cutting down apartment sizes, while others are offering more affordable property prices and payment plans, or special discount schemes. In connection with this expected trend, transactions made by the middle-income segment are likely to keep strong throughout this year.

Stay tuned to our newsletter, and IMEX Real Estate will provide you with the most accurate information as for the prices and demand growth for real estate in certain areas of Dubai. And always feel free to contact us at:

Tel.: +7 903 232 80 80 Oleg Lavrik (Whatsapp, Viber, Telegram)

Tel. UAE: +971 (50) 2528188

Toll Free in Dubai: 800-IMEX (800-4639)

IMEX REAL ESTATE BROKER LLC, UAE

Office 2502, Marina Plaza, Dubai Marina, Dubai, UAE

Email: pm@IMEXre.com

Skype: resident69

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