Chapter Five: The UAE and Dubai Housing Market.
Following a sluggish six years, house prices in Dubai are showing a pleasing rebound coinciding with a swift Coronavirus vaccine roll-out. Weak housing figures prior to the advent of covid-19 have been attributed to chronic oversupply and a period of low economic growth. Prices in the housing sector were impacted further, due to the pandemic.
The region is heavily dependent on tourism and Covid-19 seriously dampened economic performance in 2020. However, in 2021, with restrictions now being eased and improved investor confidence evident, coupled with a boost in demand and government stimulus packages, housing prices are firmly on the rise. Predictions are for real estate prices to deliver even further growth for the remainder of the year.
Dubai is considered one of the world’s top cities, not only to visit but to live in and conduct business. It offers tax-free personal and business income, low mortgage registration fees and a stable economy. In recent years, the city has invested in excellent infrastructure, offering a modern, cosmopolitan lifestyle the envy of most neighboring nations. Investment in real estate in the city is a safe and secure venture that will see good capital appreciation as the economy continues to accelerate.
The S&P Global ratings agency has delivered its latest forecast and predicts more than 30% revenue growth for Dubai in 2021 on the back of a real estate rebound and gradual recovery in other business sectors.
“We expect Dubai’s GDP to rebound about 3.5 percent in 2021, followed by growth of 2.5 percent in 2022,” an S&P analyst stated.
S&P pointed out that there is still an oversupply in residential real estate but demand for premium quality assets will encourage sales for 2021.
The economy is expecting a further stimulus in the second half of 2021 from the staging of the postponed Expo 2020, which will boost confidence.
With the post-pandemic real estate market resurgence measured in 2021 to date, and a strong outlook for a sustainable recovery, Dubai is shaping up as an excellent proposition for investment. Dubai offers great rental yields and the promise of excellent capital gains. Buyers can expect the sector to continue its positive trend.
Not only UAE residents, but expats and foreign investors can confidently purchase property. People of any nationality can purchase real estate in Dubai’s freehold property market in statutorily defined areas, even when they are not residents.
While you do not need to actually be a resident of the city to purchase property, this offers certain advantages if a buyer is seeking to become a resident of Dubai. The process for non-residents to apply for a Dubai residency visa can be achieved through various processes, with one way being by owning a freehold property in the city by payment in full or by mortgage financing.
For further information:
The Real Estate Regulatory Agency (RERA) Dubai, UAE
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