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Real estate asset represents a significant portion of many investors’ portfolio.
The size and scale of the realty market make it an attractive sector for property buyers.
The real estate market is a significant indicator of the performance of a country’s economy.
In a way, the value of real estate can be considered as an indicator of the economy’s overall health. Thus, the real estate market is one of the key factors that drive world economies.
Today, the term “real estate” is not just limited to the development of residential, commercial and retail properties.
The sector has expanded its domain to the development of economic hubs and industrial zones, and the formation of integrated townships.
The segment also provides infrastructure requirements like building and community space for various economic activities.
In the UAE, a lot of investors seek ways to diversify away from the traditional stock market by investing in the realty sector as this is the ideal time to purchase property.
The market is witnessing a lot of interest from people who want to purchase the right property at the right time.
In the second quarter of the current year, the property market has seen excellent performance with industry-wide economic diversification that is considered as the key driver to sustained growth.
The UAE remains amongst the top countries in the world for residential property investment potential on the basis of economic growth and market recovery.
This is because the country has demonstrated solid growth in terms of domestic wealth creation, with the increasing population helping the regional demand for properties to continue to grow.
The market fundamentals in Dubai remain strong with enhanced transparency, despite changing market dynamics.
Investors are now keen on the latest happenings in the realty market.
With this positive growth trajectory, real estate assets continue to attract significant interest from local and international investors, and the economy of the emirate has witnessed robust growth in recent times.
Since the Dubai government remains keen to build houses and hotels ahead of the hosting of the Expo 2020, central planning keeps the construction going.
The current softening of Dubai’s residential prices is a good opportunity for investors to buy in a market which has a strong growth potential over the next five years.
Buyers looking for long-term gains will do well as Dubai is a safe and established global business centre in the region.
Large-scale developments turned the emirate into one of the fastest growing cities in the world, and the city is expected to eventually overcome price fluctuations.
The market needs to meet the high demand for projects with all the perfect elements from investors.
Investors are taking a long-term view towards more stable and sustainable returns expected from their investment.
When it comes to the profile of the investors in Dubai’s realty sector, we can classify them into two types: international investors and end-users.
The first group continues to buy completed properties, while the second group primarily depends on their cash flow and the time frame for the completion of projects.
Furthermore, the second group buys off-plan properties if they can afford and is in the Middle East for some time. They go for completed properties if their fund is limited and need the property immediately.
Source: Manish Khatri, VP - Sales and Business Development, SPF Realty, Special to Freehold