The UAE’s real estate market is currently experiencing renewed vigour and momentum, thanks to the peaked rental and capital appreciation across some of the high-end properties, according to real estate investment advisory firm Medallion Associates.
The UAE’s sustained attractiveness 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, it stated.
Medallion Associates pointed out that despite the difficulties brought about by the pandemic, domestic real estate transactions have presented an upbeat market outlook.
Amid the pandemic, Dubai’s real estate market posted a total of 35,600 transactions worth AED72 billion in 2020 compared to AED82 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 rose 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.
CEO Masood Al Awar said: “Global investors with a long-term investment view and strategy have a resilient outlook for Dubai and the UAE. We attribute 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 attractive tax base,” he added.
Al Awar said: “We are confident that our role is to attract 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.”
“Even during the toughest of times, the real estate market in Dubai and the UAE in general continued to attract investors from Europe and the US 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,” he added.
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.
According to him, the new policy, which is enacted to attract more talents who can contribute to the country’s progress, will positively impact the market with the subsequent entry of more prospective property investors.
The real estate is also likely to benefit from the government’s stimulus packages to be rolled out in 2021, especially in Dubai, which was one of the first to open under strict precautionary and safety measures, he added.-TradeArabia News Service