According to experts, Dubai's real estate sector will continue to be an appealing investment destination for a wide range of interested parties.
According to Hamid Shabir Khawaja, chief commercial director and co-founder of Footprint Real Estate, a diversified international real estate firm headquartered in Dubai, real estate deals in Dubai have reached new heights, including off-plan properties, ahead of Expo 2020.
"This momentum is expected to continue as more investors, developers, and even tourists seek to invest in a vibrant city like Dubai," he said. "Expo 2020 contributes to market growth because it not only brings together potential buyers and investors in one location, but it also adds to Dubai's attractiveness as a global business hub." We anticipate that market growth will continue as a result of the influx of visitors, industry leaders, representatives, and potential investors during the six-month global event.
"Additionally, we believe that the UAE's real estate will continue to flourish in the coming years, given changes in preferences and lifestyle, flexible foreign ownership regulations, and an attractive economic landscape," he predicted. "Another important factor is 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."
Khawaja also stated that the "recovery period" is now reviving the interest of both foreign and domestic investors. "Real estate in the UAE has recovered this year, and even the luxury property market has seen significant growth." Despite recent challenges, Dubai remains one of the top foreign real estate investment destinations. In fact, it was announced earlier this year that foreign investors will be granted 100 percent business ownership of DED mainland licenses. In essence, it is intended to facilitate the development of the nation's business performance in order to attract more investments."
When asked about the company's strategy for attracting investors, Khawaja revealed that the pandemic forced the company to shift gears slightly. "One of the most difficult challenges we faced in the international market was maintaining relationships with foreign investors and developers despite communication constraints." Now that we are slowly recovering, we are back on track, as evidenced by our sales transactions for the third quarter of this year. Foreign investments are important, but we must also focus on the domestic market."
Internal investments, when combined with the right strategies, yield greater returns, he adds. "Our local market has a plethora of major developers, which we are leveraging as another competitive advantage." Notably, end users have increased to 80% for expats and up to 100% for locals as a result of the loan to value ratio, as banks have been extremely supportive in lending loans."
Looking ahead, he stated that Dubai has managed to maintain its position as one of the top three global property investment destinations, and that it will either maintain or climb higher on the list.
"Dubai, with its robust and expanding infrastructure, continues to attract not only tourists, but also investors and developers," he said. "Dubai's real estate sector remains globally competitive due to the UAE government's initiatives in diversifying the economy and ensuring the country's attractiveness to foreign investors." We have consistent government spending, a progressive economic diversification policy, increased foreign direct investment (FDI), strong financial reserves, and a large sovereign wealth fund, to name a few.
The UAE is also in a very strategic location because it connects regional and international trades, and the established world-class free zones contribute to business attractiveness."
Source: Khaleej Times
