The real estate industry of Dubai will keep on growing in coming years to offset the effects of slowdown in global economy.
Some activities such as Dubai’s long-held fame as a preferred investment destination, Expo 2020 Dubai, and pro-investment government initiatives can affect this industry.
Developers also need to adjust their strategies to the future aspirations of the city. In other words, they need to build for the future.
Present state of property
As developers say, Dubai’s real estate industry is maturing. Some factors like price correction have placed Dubai in the right direction. Price correction attracted more investors to Dubai.
Besides, the government is doing its best to turn Dubai into a long-term destination for residents. Also, many people have achieved the goal of owning a house in Dubai.
Moreover, it should be said that the real estate market of Dubai is now favorable for buyers as prices have been corrected. Also, Expo 2020 cause more growth in the future.
Expo 2020 impact
Expo 2020 has already helped global presence of Dubai as a world-class city. Besides, Expo 2020 is expected to boost various sectors such as the hospitality sector.
Moreover, Expo has increased foreign interest and investments due to progressive intervention and reforms of government.
According to the real estate developers, the market is oversupplied now, but it is on its way to reach a softer cycle.
Now, the most important factor that the industry should focus on is making the right kind of supply which is aligned with buyers and investors’ needs. It is interesting to note that Dubai has witnessed a sharp rise in real estate transactions in the first 5 months of 2019. This growth is the impact of competitive product offering. As well as this, positive initiatives of government such as long-term visas for investors and professionals have affected the industry.
In the first 6 months of 2019, Dubai had a 135 percent growth in FDI. This means many great things are coming to Dubai. Actually, it will result in more jobs and a larger influx of people coming to Dubai that will hopefully lead to a rise in demand for real estate.
Also, a positive move that is expected to increase investor confidence is the establishment of the Higher Committee for Real Estate.
The committee will have an impact on making balance in the supply as well as long-term growth of the industry. The growth in the industry can be already seen with 134 percent increase in Dubai’s sales transactions within days of establishment of committee.
Furthermore, one of the most important laws in the industry has been the one for joint real estate ownership. As experts say, this law will add to reputation of transparency that the city is famous for. Besides, it will boost the investors’ confidence.