The real estate expert, chairman of the board of directors of the «W Capital Real Estate Brokerage Company», Walid Al Zarouni, stated that the real estate market in the UAE is currently preparing to enter the stage of “seizing opportunities” during the next year, with the increasing rise in the levels of optimism and confidence among all parties in the real estate sector, Especially real estate developers and investors.
Al-Zarouni said in a press statement that, based on the current market situation data, the future offer, and plans developed to take advantage of the opportunity to organize the forthcoming «Dubai Expo 2020», which is expected to raise the demand for real estate, it can be concluded that the sector is on the verge of momentum that will contribute to revitalizing Real estate prices after two years of relative calm in the markets.
Al-Zarouni explained that, for example, all indications indicate that the real estate market in Dubai is preparing for the great momentum expected before "Expo 2020", adding that, according to the "Property Finder" group, there are clear signs of improvement in the real estate market in Dubai, where it recorded the 12 months The past has the largest number of real estate deals in the emirate’s history, based on the analysis of the Land and Property Department’s information, as Dubai recorded a total of 44,590 real estate deals since November 2018 to November 2019, which is the largest number of deals registered in 12 months in the history of the Dubai real estate market.
He indicated that the period from January to November 30 this year witnessed the sale of 36,799 residential properties, which is the second highest number after the number registered in 2017, when 37,388 housing units were sold in total.
Al-Zarouni added that adding the operations recorded in December, may make the year 2019 the record number of sales of registered residential properties within 10 years.
Al-Zarouni indicated that, according to the FAM real estate agency, 59,800 properties are scheduled to be delivered in Dubai this year, of which 33,800 are in the final completion stage, as the agency expected to reach the market equilibrium price by the Expo 2020 exhibition, Especially since there are 46,000 additional units due to be delivered after June 2020.
Reap the rewards
He pointed out that it is expected to reap the fruits of the total procedures and laws that regulate and stimulate the real estate sector, which will boost demand in the sector during the next year, in addition to activating more smooth laws regarding real estate ownership, which initiatives have left a positive impact on real estate investors regarding the future of the sector, and it is expected that they It will play an important role in stimulating investment and maintaining the momentum created by the tourism movement even after the end of the International Expo.
The "Gold Card"
Al-Zarouni stated that the approval of the permanent residency system "the gold card" for investors, entrepreneurs, owners of specialized talents, and researchers in the fields of science and knowledge, will continue to support the demand for real estate, absorb the current and future supply, and improve the stability of real estate prices. He stated that the residential and office space sectors are the most benefiting from the potential positive effects of the new initiatives launched by the government, and it is expected that the rental markets will witness an exceptional year in 2020, with Dubai expected to attract more than 25 million visits to the Expo 2020 Dubai, which means that it is imperative that An increase in the demand for fully serviced flats, which will give the rental market an additional boost.
Short term leasing boom
A report by Dubizzle expected that there will be a big boom in the short-term rental sector in Dubai until 2020, in conjunction with the increase in the number of visitors to the emirate, and that many owners resort to renting housing units to take advantage of the licenses of so-called “vacation homes”.
The report indicated that the short-term rental option gives tenants more options and flexibility, as the tenant does not bear the cost of furniture or monthly consumption bills, and it eliminates the need to share deferred checks with the owner, while failure to adhere to a long-term contract gives the owner more flexibility in Use the property, or even sell it, without any rental restrictions.
Delivery of units
Real estate expert, Walid Al Zarouni, stressed the importance of enhancing the awareness of real estate developers of the need to deliver units in harmony with the movement of demand, calling on investors in the sector, whether they are individuals or companies, to exploit and seize real estate opportunities at the present time.