The United Arab Emirates has become a focal point for property investors on an international scale as Medallion Associates, a real estate investment advisory company, reports that interest has spiked as a result of increased luxury property purchases across the country.
The firm’s Chief Executive Officer, Masood Al Awar, states that the global investors consider the UAE, particularly Dubai, a rewarding strategic choice with strong potential on account of its profit landscape, investor-friendly policies and consistent real estate transactions despite the pandemic.
The country implemented swift and structured regulations in response to COVID-19, which garnered positive outcomes within the year and established the UAE as an attractive location for both investors and tourists worldwide. Renowned ventures into innovation, combined with a flourishing job market and record-breaking architectural projects have distinguished Dubai as a lucrative investment destination with unbound potential for growth.
Though demonstrating continued successful progress within the first year of the pandemic, Medallion Associates is confident that incoming investment opportunities will further boost growth in the Emirates’ real estate market. In 2019, Dubai recorded AED 82 billion in real estate transactions, which was recorded at AED 72 billion in 2020, validating the market’s stance as resilient and promising.
In 2020, residential property values remained at a steady AED 1.2 million; however, due to the effects of COVID-19, the offline property market dropped to AED 1.1 million. Nevertheless, Reidin reported that Dubai’s residential property market achieved a 13% increase for ready property transactions in respect to 2019 figures, standing at AED 34 billion. Dubai’s villa sales prices also experienced a 2.7% spike on a quarterly basis, presenting similar elevated results as Abu Dhabi.
“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,” shared Al Awar.
Proving Dubai’s persistent global appeal, the world-renowned city welcomed 4.9 million tourists between January and November 2020. In addition to the steady influx of tourists, the UAE government has introduced an opportunity for exceptionally talented foreigners to redeem citizenship, attracting substantial interest from individuals seeking a safe place of refuge from worldwide COVID-19 red zones.
There is a multitude of prospects and projects for growth that are underway in 2021; while the UAE’s leading property developers have announced 69,500 residential units in the works, the government has announced an expenditure rate of AED 57.1 billion. The budget will be divided between infrastructure and transportation (41%), social development and security (31%), justice and safety (22%), which are predicted to further elevate the Emirates’ global reputation for world-class living.