UAE’s Real Estate Sector in the Booming Phase
As the Middle East recovers from the impact of the Covid19 pandemic, the UAE’s real estate market is showing signs of revival ahead of Expo 2020. The rebound of the UAE’s real estate market continued in Q2 2021, and the massive expo will serve as the cherry on top for the real estate sector across the Gulf.
Regional service providers in the real estate sector are altering both existing and new structures utilizing a “brownfield” strategy. The cost of updating all of the hardware in existing buildings is enormous. Nonetheless, in light of increased regulatory pressure from efforts such as the UAE Energy Roadmap and the Green Riyadh programme, the sector cannot maintain the status quo. As a result, promoters of “brownfield” solutions are now advocating for a consensus on cost-effective, downtime-reducing, and hardware-agnostic solutions that may provide digital parity between old and new buildings, increasing the real estate sector’s competitiveness.
Spending on infrastructure upgrades in support of Expo 2020 Dubai would undoubtedly raise demand for rental homes in the emirate and encourage real estate investment in the coming years. The authorization of awarding golden residency to residents for a period of ten years to several categories, including those with doctoral degrees, all doctors, and engineers in the fields of computer engineering, electronics, programming, electricity, and biotechnology, will also benefit the real estate sector.
The government’s various modifications, such as reforming the Commercial Companies Law and eliminating the need for some local companies to have an Emirati shareholder and allowing foreigners to possess 100% of the company, deliver a plethora of opportunities for local, Arab, and foreign investors. This is projected to increase UAE foreign direct investment and pave the path for new initiatives to be launched. Adding to that, during this difficult economic situation, UAE banks have slashed interest rates on mortgage loans, prompting individuals to buy rather than rent residential units at a time when prices have reached levels that make real estate a good investment.
The threat of Covid-19 shifted awareness to the need for more autonomous and bigger living areas, while remote work regulations encouraged the need for larger houses that could accommodate both living and working. Also, the UAE’s widespread vaccination centers help the economy recover faster than other countries in the world, as they lead proactive immunization initiatives in the area, supporting the real estate sector.
The Middle Eastern real estate markets have a great number of development opportunities when it comes to integrating businesses with ecofriendly and sustainability standards. Several ideas are being considered and developed that will enable ongoing innovation and improvement while also redefining the real estate sector in the UAE.
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