A report by Dubai Economy expected that the current year will witness a 3.6% growth in the real estate sector. The report stated that Emirati investors topped the list of investors in the Dubai real estate market during the year 2018, with investments amounting to about 10 billion dirhams, due to the continuous increase in the population of citizens and the increase in the supply of real estate in the market, especially residential real estate.

The report also expected that the Emiratis will maintain their share of the total real estate investments, pointing out that Indian investors are ranked second among the largest investors in the real estate market in Dubai, with investments amounting to 9 billion dirhams, followed by the British with investments exceeding four billion dirhams, then the Saudis with investments amounting to Three billion dirhams, followed by Pakistanis, Chinese, Jordanians, Egyptians and Canadians.

investment funds

Dubai Economic Report clarified that the real estate market in the UAE in general, and Dubai in particular, has great potential to attract more local and foreign indirect investments through real estate investment funds, pointing out that these investment tools are closed funds, offering liquid and flexible investments in real estate, with advantages Tax, without the complications and transaction costs involved in direct ownership of the property.

He continued: «There are currently two real estate investment funds listed in the Emirates, namely the Emirates Real Estate Investment Fund and the Emirates NBD Real Estate Investment Fund, both in Dubai, and listed on the Nasdaq Dubai Stock Exchange, as they invest in real estate assets that are compatible with Islamic law, such as office buildings and warehouses. , Retail centers, schools, and parking lots, ”pointing out that the Dubai Financial Market issued regulations for listing and trading of real estate investment funds, in anticipation of further growth in these real estate investment tools in the emirate.

Added Value

The report showed that real estate activities represent an important part of the services sector in the Dubai economy, and achieved an added value of 28.7 billion dirhams (at constant prices) during 2018, making it the fifth most important economic sector in terms of value, while the number of workers in the sector reached about 33 thousand workers , Equivalent to about 1.6% of the total number of workers in Dubai, but the productivity of this sector has a high added value, amounting to about 649 thousand dirhams per worker on average, which is the second highest productivity in the economy.

The report stressed that the added value of real estate activities in Dubai grew strongly during the year 2018, rising by 7%, a rate that exceeds three and a half times the rate of real GDP growth. The report expected that the real estate sector would grow by 3.6% in 2020.

Incentive incentives

The report revealed that real estate investments formed an estimated 23% of the total capital spending during 2018, pointing out that the real estate market in the field of offices witnessed a rise in costs with the merger of some companies. The report expected that the owners will offer more attractive conditions such as competitive prices, contribution to furnishing, free months, active asset management, and renegotiation of early renewal of the lease.

According to the report, the number of residents in Dubai is expected to increase at an annual rate of 1.46% between 2018 and 2022, indicating that the expected future demand for residential real estate is driving growth in the supply of units that enter the market annually.

9

Billions of dirhams of Indian investments in the Dubai real estate market.

28.7

Billion dirhams added value for real estate activities in the Dubai economy during 2018.