UAE's real estate sector is robust and in line with the country's surging economy, according to TASWEEK Real Estate Development and Marketing’s latest comprehensive market intelligence report. Rapid population growth, the government’s globalization policies, and improving income levels are some of the factors that have been attributed to the growth in the sector.
The UAE's population continues to grow at 7.6% yearly, one of the highest worldwide and is expected to hit 9.9 million by the end of 2014 and 18.83 million by 2023.
“There was a fluctuating yet sustained demand for real estate in Q3 as the size of the population expanded exponentially. This trend is only natural as the sector strives to meet the needs of the people. Other indicators include stronger banking liquidity, more services, and either sustained or increased prices for off-plan rentals and sales. Further bolstering the industry’s expansion is the UAE Government’s move to put significant measures in place to prevent any speculative activity in real estate and to control credit growth. In the coming years, TASWEEK expects the local industry to continue its uptrend not just due to the rising population and the sector’s steady recovery but also due to other fundamental factors such as surging investor confidence, Dubai’s vastly improved financial status, and joint public and private projects buoyed by Dubai’s hosting of World Expo 2020,” said Masood Al Awar, CEO, TASWEEK Real Estate Development and Marketing.
TASWEEK’s UAE Real Estate Market Report for Q3 2014 also shows that the overall inflation rate remained at less than 2% year-on-year in March although it continues to go up mainly due to rising rents.