Dubai: Investments In The Property Sector On The Rise Once Again
The UAE and Dubai have always been favorite destinations for investments due to their market-friendly ecosystems. When the COVID pandemic hit, many experts speculated that the investment inflow would be low, and the property sector, in particular, may witness a significant decline in investments. However, thanks to an efficient and swift pandemic response, Dubai’s property sector has once again proved its resilience by showing a steady surge in investments in the post-pandemic scenario. Dubai real estate market investments have reached $9.8 billion so far in 2021, which comes to around 44% more than the investments for the same period last year.
Many factors may have affected this increase in real estate investments. The investment landscape has been rendered more attractive to investors by the slew of progressive reforms carried out by the government in the last few years, the swift response to the COVID-19 pandemic, and many other opportunities opening up in the region.
New Rules and Amendments
The UAE administration has carried out a range of reforms meant to make the economy more business-friendly. The foreign ownership amendment removes the 51% cap and other domestic companies’ ownership restrictions by foreign investors. This has undoubtedly played a vital role in enhancing investor confidence and making the investment opportunities in Dubai’s economy more lucrative. The amendment, which the administration implemented earlier this month, has already been made use by investors from several sectors. The Golden Visa and the offer of Emirati citizenship to special talents and investors have also inspired confidence and led many foreign nationals to invest in Dubai. There is also a general push towards a broad-based and secular rule of law in the country. These changes also play a crucial role in increasing the appeal of Dubai as a real estate hub. Since these changes are expected to increase the inflow of investors and talent into the country, the corresponding demand for real estate and properties is also expected to remain high in the coming years.
The Pandemic Effect
The government authorities’ efficient government response to the pandemic has proven yet again that the country’s health systems are mature and adequate to deal with public health crises. The pandemic has also motivated many residents in Dubai to invest in comfortable, safe, and secure housing and real estate properties. The present conditions, which are expected to continue for a few more years, necessitate many additional features like attached office space and relative insulation from denser city areas to facilitate the post-pandemic lifestyle. Many new properties have started to incorporate these elements into their designs.
The upcoming Expo 2020 and the associated inflow of tourists and investors worldwide are also seen as an opportunity for the real estate sector to showcase its resilience and further strengthen its position as a lucrative host regionally and globally. The business-friendly interest, tax, and mortgage regimes, a highly effective Covid-19 vaccination drive, new visa and citizenship rules for investors, and full ownership opportunities have been seen as crucial determinants of the big boom presently witnessed by the Dubai real estate and property sector. Financial advisory firms and investment companies should keep a watchful eye on the profitable developments fast unfolding in Dubai. The resilient growth has proved the adaptability of the UAE’s economy in various externalities, due to the pro-active and watchful government authorities and well-developed and mature infrastructure.