10 Positive indicators that call for optimism in the real estate sector during 2020
UAE-Dubai-Jan 11th 2020: Real estate expert and chairman of the board of directors of «W Capital Real Estate Brokerage Company», Walid Al Zarouni, identified 10 positive factors and indicators that call for optimism in the real estate sector during 2020. These indicators will pave the way for a new stage of growth and a new reality for this sector, which is considered one of the largest and most important sectors driving Dubai economy.
He said that optimism for 2020 is based on many concrete factors and facts not just hopes and morale, as it is based on some positive
indicators that can be built upon in the future.
He added that the first factor is the issuance of January 4 th document announced by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, which contributed greatly in spreading a spirit of optimism, enhancing confidence and spreading reassurance in all economic sectors, including the real estate sector in all its parts.
Dubai Expo 2020
He added: The second factor is the anticipated momentum
accompanying the organization of "Dubai Expo 2020" exhibition, which will enhance the demand for real estate and raise confidence in the business of real estate investors, as this event, which is considered one of the largest international events, is expected to attract 25 million international visitors. These visitors will also have the opportunity to think about the possibility of moving and reside in the Emirates, especially in Dubai.
While the third factor included the easy conditions for buying real
estate and the facilities provided by developers that will help in
attracting new residents to the state during the coming period, along with the current focus of real estate developers to provide competitive offers through easy payment plans, which contributes to the local real estate market becoming one of the most competitive real estate sectors in which the long-term value of real estate buyers and investors is formed.
Laws and Legislations
The fourth factor in the total real estate laws, legislations, regulations and incentives for the real estate sector came more influential in the performance of this vital sector that will enhance demand in the sector during the current year, in addition to activating more smooth laws on real estate ownership, which initiatives have left a positive impact on real estate investors on the future of the sector. It is expected that it will play an important role in stimulating investment and maintaining the momentum created by tourism movement even after the end of the International Expo.
He pointed out that the fifth factor is represented by recent studies and reports issued by government agencies or from private research
centers regarding positive expectations that the real estate sector will achieve its recovery in its growth indicators with a state of optimism on a large scale with the countdown to host the Expo, where Dubai managed to pass a road full of accomplishments for the sake of this global dream will all be positive and stimulating to achieve high growth rates in light of the positive correlation between organizing and increasing the rates of demand for real estate units of various categories; residential, commercial or administrative.
A report by Dubai Economy expected that the current year will witness a 3.6% growth in the real estate sector. The report stated that Emirati investors topped the list of investors in the Dubai real estate market during the year 2018, with investments of about 10 billion dirhams, due to the continuous increase in the population of citizens and the increase in the supply of real estate in the market, especially residential real estate.
He pointed out that the sixth factor comes in light of the great potential provided by the real estate market in Emirates in general, and Dubai in particular, to attract more local and foreign investments while providing liquid and flexible investments in real estate, with tax benefits, without complications and transaction costs involved in direct ownership of the property.
He added that the seventh factor is achieved as a result of what Dubai possesses of huge qualifications to help it regain its strength quickly, as the infrastructure and logistics in Dubai are characterized by high quality, which is the best in the region, in addition to the services and infrastructure of the most advanced communication networks that provides excellent services to a broad spectrum of clients and multinationals. This facilitates the establishment of projects and businesses, not to mention the government’s continuous spending of significant investments in infrastructure estimated at tens of billions.
Dubai, thanks to the advanced transportation network, forms a link
between Europe and Asia, which contributes to more accessibility in
The eighth factor is the population growth in the UAE in general and
Dubai in particular as it’s among the highest in the world, due to
migration. According to population statistics and expert expectations, Dubai is on the verge of a major urban boom during the next few years, driven by increased population growth, an influx of expats, and a rise in tourism. This significant population growth will definitely increase the demand for residential and commercial properties, thus increase investor profits.
The ninth factor is the population growth in the UAE in general and
Dubai in particular among the highest in the world, due to migration.
According to population statistics data, and according to expert
expectations, Dubai is on the verge of a major urban boom during the next few years, driven by increased population growth, an influx of expats, and a rise in tourism. This significant population growth will definitely increase the demand for residential and commercial
properties and thus will increase investor profits.
Security and stability
Walid Al-Zarouni pointed out that the tenth factor, which is considered one of the most important of these factors, is that Dubai has many attractive reasons for quality living and good investment, foremost of which is security, safety and stability thanks to the availability of security services of international standards in addition to the presence of more than 200 nationalities of different cultures and ethnicities living on The land of Dubai.