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Economic diversification has become a buzzword by governments in the region which have accelerated their efforts and policies to move away from the traditional oil revenue stream.
The UAE, specifically Dubai, has always been a keen promoter of the concept seen through extremely conducive business policies.
Dubai’s strong policy to move away from oil dependence and diversify its economy has started to show positive results, with the real estate sector paving the way for the phenomenal progress of the city.
We have also seen one of the largest oil-rich GCC countries recently announce a strategy for the next decade to create a multi-billion-dollar parallel economy which will not be oil-dependent.
This tells us that the future is about the diversification of business activities.
If governments have been doing it in the past and have become increasingly conscious about the same, how can organisations that operate under the umbrella of the same government be immune and/or ignorant to the same? This is a learning curve for all corporations and it is definitely beneficial to follow suit.
Dubai takes economic diversification seriously, developing key areas of the economy and broadening its revenue base.
The city’s economy remains vibrant and maintains a growth path. It has long arrived on the global scene and is now cementing its position as a serious contender at the global level with multiple game-changing projects currently under way.
This diversification drive will help see a robust momentum in the real estate sector, which is a major indicator of how an economy is faring.
Therefore, the government’s policy to diversify its economy is key for the growth of the real estate sector in the emirate.
The realty sector is expected to gain robust momentum spurred by a host of positive factors. Nearly all segments in the real estate industry will show growth with the residential sector maintaining its status as the major driver.
The rise of the city as a hub of finance, tourism, trade and healthcare in the region will help support the revival of the realty market, where the diversification drive should be seen as a healthy sign.
Moreover, Dubai maintains its status as one of the fastest-rising cities in the world, with a plethora of opportunities for investors. Buoyed by the hosting of Expo 2020, the realty sector is seeing a massive surge in activity in both the residential and commercial segments.
Property buyers from other parts of the world fully understand the potential of the emirate’s realty sector and the massive amount of foreign investment speaks volumes about their trust in Dubai’s future.
It is anticipated that the real estate investment sector is expected to achieve a remarkable revitalisation in the coming period.
The growth of the real estate market will go in line with the changes and growth in demographics, economy, technology, globalisation and a number of other trends.
Dubai has a strong performing commercial real estate market, with a high growth potential in the future.
Commercial real estate is expected to thrive with the influx of people from other parts of the world.
For the developers who operate solely in the residential sector, this is the right time to diversify their business strategies and focus on commercial infrastructure as well.
Many developers, who made huge profits by building tall residential buildings and selling them out quickly, are now increasingly showing interest in the commercial property sector.
Source: Ranjeet Chavan, Special to Properties