They stressed that it increases investor confidence and contributes to absorbing the supply in the market

Realtors: High demand for commercial real estate, supported by "government incentives"

• The economic engines and the administrative intelligence of the state government contributed to the revival of the real estate market.

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Realtors reported that the support provided by the UAE government to the commercial sector, represented in facilities and exemption from fees in licenses and other services for companies in the business sector, is positively reflected on the real estate sector, especially commercial real estate such as offices and shops.

They confirmed to "Emirates Today" that the continuation of these efforts, especially by the governments of Abu Dhabi and Dubai, from the beginning of the pandemic, is what has increased investor confidence and created continuous demand for the sector, which contributes to absorbing the supply in the market.

managerial intelligence

In detail, the General Manager of the Al Habtoor Group, Ghaleb bin Kharbash, said that "the economic engines and the administrative intelligence of the state government contributed to reviving the real estate market, especially in the markets of the emirates of Abu Dhabi and Dubai, as the proposed incentives created solutions to drive the economy in local markets and encourage attracting investors to local markets." .

Bin Kharbash added, "The real estate sector also benefited from the facilities for issuing commercial licenses to investors in the state's markets without having a service agent, and the package of reducing fees on commercial activities stimulated the demand for commercial real estate, offices, shops and warehouses."

The General Manager of Al Habtoor Group expected that “the next three months will witness an increase in the issuance of commercial licenses, which will make the Abu Dhabi and Dubai markets the focus of the attention of all investors around the world, by focusing their investments in entering and benefiting from all the incentives offered by them, and thus stimulating the demand in the real estate market for all Residential and commercial units during the coming period.

Bin Kharbash stressed, "Thanks to the huge government measures, Dubai, as well as Abu Dhabi, is moving towards sustainable business development and leadership in the region, and recovery from the repercussions of the Corona pandemic on local markets."

Incentives and facilities

For his part, CEO of Harbor Real Estate Company, Muhannad Al-Wada, said that "there are incentives and facilities that support the business sector, and this has a positive impact on the office and commercial sector", noting that "the initiative of foreign ownership of 100% in several areas has an effective role in Attracting companies to the UAE economy, in addition to the economic incentives as a whole that help increase the population and demand and develop infrastructure, and all of this enhances the levels of liquidity in the market.”

He pointed out that the organization of "Expo 2020 Dubai" will play a major role in supporting companies, as it increases demand and promotes Dubai and the UAE, as well as the urban plan that focuses on developing five main areas in Dubai, which gives companies an incentive to develop their businesses and expand further.

demand recovery

For his part, the Chairman of the Board of Directors of “W Capital” real estate brokerage, Walid Al Zarooni, said that “the response of the Dubai government during the (Covid-19) pandemic and the easing of burdens on investors were one of the factors supporting the stability of the real estate market, the recovery of demand since the beginning of this year and the improvement price level.

Al-Zarouni praised the government’s initiatives to grant citizenship or golden residency, the latest of which was targeting 100,000 programmers around the world, as well as inviting all doctors residing in the country to apply for golden residency, which grants them and their families a long residency for 10 years, which enhances their sense of stability and contributes to By attracting the best health expertise and skills from different countries of the world.

He stressed that granting such long stays will prompt residents to switch from renting to owning, for example, the price of a real estate unit may be lower in value than renting the unit over 10 years, which is the duration of stay.

Al-Zarouni pointed out that "the rise in the population, with its various segments, will lead to an increase in demand for all categories of real estate, whether villas, apartments or commercial offices, amid the selection of groups that add to society, whether investors, programmers or other competencies," expecting a decrease in the real estate supply due to The likely demand, which pushes prices to rise, amid the decline in the percentage of new projects currently, and may encourage real estate developers to launch new projects to accommodate the growth in demand.

Residential sector support

For her part, Senior Director of the Research Department of GLL, Dana Salbak, said, "There have been many stimuli, since last year, that were launched after the emergence of the pandemic, and the slowdown in demand in the sector," noting that incentives were approved to revive demand and support the real estate market. Most of them were focused on the residential sector.

Salbak added, that it is necessary to see incentives that help commercial sectors such as offices and shops, while the retail sector is facing challenges from the "Covid-19" pandemic among real estate developers, and for the first time there are incentives from the government, which is considered a positive thing for the retail sector.

She explained that for the office sector, there is a revival in demand for office administrative spaces, adding that many companies started entering sectors that were not preferred before, such as pharmaceuticals, healthcare and technology, and launched their activities from Dubai and Abu Dhabi.

And she continued, "The stimulus does not have to absorb the excess supply, as the shops in Dubai are currently oversupplied," expecting that the supply of shops will rise during the next two years until the tourism movement recovers to pre-pandemic levels.

downgrade and cancel

In turn, the real estate expert, Muhammad Al Ali, said that "the reductions and facilities for commercial licenses and the discounts that were made, came with the aim of stimulating commercial activity, and the real estate sector as well," pointing out that the reduction and cancellation of some fees will contribute to the opening of many projects.

He added that warehouses and offices will not be closed like the beginning of the pandemic, and that by the end of this year you will notice the changes, and with the beginning of 2022 you will find the change clearly, pointing out that the period from 2020 to 2021 there are noticeable changes in the economy and real estate, and purchases significantly, and with the beginning of next year. We can judge clearly.

Motivating investors and residents

The real estate expert, Muhammad Abu Hareb, believes that the decision to reduce the fees for some government departments and institutions in Dubai is a motivating factor for investors and residents, because there are fees that included the commercial sector for individuals, and they reduced some costs and living burdens.

Abu Hareb stressed that "this contributes to attracting more investors and residents to work or open investment projects in the country, in addition to contributing to revitalizing the real estate sectors, including offices, shops and apartments."

He pointed out that these measures contribute to a gradual increase in the value of rents, which at the present time have not seen any improvement, especially in the industrial or commercial sector due to the high costs.

With regard to absorbing the excess supply, Abu Hareb said: “This talk is premature, but we cannot be certain when there will be a balance in supply and demand, because the supply is greater than the demand.”

He stated that the number of new projects offered must be reduced in order to balance supply and demand, expecting that there will be a strong movement in the market in the future with the increase in real estate prices.

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