The market offers long-term opportunities and gains thanks to strong fundamentals and positive economic outlook
Realtors: 2021 is the year of real estate opportunities and expectations that the "return" on investment will reach 9%
Dubai real estate currently offers an average return of 7%.
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Realtors confirmed that Dubai is a good model for real estate investment, thanks to the stability of the market and high returns compared to international levels.
They explained to "Emirates Today" that despite the crisis of the Corona virus pandemic, Dubai has maintained its position, and has become the preferred destination for investment, whether for large companies or entrepreneurs.
They added that the real estate investment return is expected to return to levels before the “Covid-19” pandemic period, by the end of 2021, and to reach the same rate for the pre-pandemic period of 9% in the next few months.
They stressed that the market offers opportunities and gains in the long term, thanks to the strong foundations and positive economic expectations that increase the confidence index in the future of investment in the emirate, considering the gradual and studied recovery, and in the long term, a positive indicator.
They said that 2021 has proven to be the year of opportunities, as there are noticeable increases in real estate prices, and the demand for them has increased significantly.
recovery state
In detail, the real estate expert, Muhammad Al Ali, said that the return on investment in real estate in general declined with the onset of the emerging pandemic of the Corona virus (Covid-19), due to the cessation of companies, and the decrease in the rental value.
He added that the real estate market, since the beginning of 2021, has witnessed increases in investment returns, as a result of the measures taken by the state at various levels, including the provision of anti-viral vaccines and tests, which led to a state of recovery in the Dubai real estate market.
Al Ali continued: “The return on investment real estate before the pandemic was about 9%, and during the pandemic period it ranged between 6.5 and 7%, currently it is between 7 and 8%, and we expect it to reach 9% during the next few months, coinciding with the demand for real estate purchases. in Dubai".
Al Ali pointed out that Dubai is able to face challenges, including the Corona virus, expecting the return of the investment market in Dubai by the end of 2021, to pre-pandemic rates in terms of sales, rents, investment, and housing, especially after the decision on golden residency, pointing to Quarantine procedures and the provision of vaccinations greatly support the economic situation in Dubai in general.
He said, "This is what is happening in the current year 2021, and the change will appear clearly and positively in Dubai next year."
good model
In turn, Walid Al Zarooni, Chairman of the Board of Directors of the "W Capital" real estate brokerage, said that Dubai is a good model for real estate investment, thanks to the stability of the market and high returns compared to international levels.
He explained that the emirate has maintained the investment momentum, thanks to supporting factors, most notably the advanced infrastructure and the great flexibility to adapt to crises thanks to government decisions and procedures, pointing out that the market currently offers great opportunities for investors in the short term, as this category plans to take advantage of the market movement and the upward trend in prices on the over the next 12 months.
Al Zarooni stressed that the market also offers long-term opportunities and gains, thanks to the strong foundations and positive economic expectations that increase the confidence index in the future of investment in the emirate.
Al Zarooni stated that Dubai has maintained its position and has become the preferred destination for investment, whether for large companies or entrepreneurs, and recent global changes and the economic repercussions of the pandemic have fueled the interest of foreign investors to invest in Dubai real estate, or the presence and establishment of new businesses to benefit from the privileges provided by the emirate, and excel over their counterparts in world capitals.
Al-Zarouni indicated that Dubai real estate currently offers an average return of 7%, which is a candidate thanks to the factors supporting the market until it reaches 8 and 9% by the end of 2021, considering the return much better, and may exceed double, when compared to the real estate return in international capitals.
attractive equation
In addition, the CEO of "Harbor Real Estate Company" and a lecturer at the Dubai Real Estate Institute, Muhannad Al-Wadiya, said that the return on investment in Dubai is good compared to other capitals in the Middle East, because it has the lead in the field of real estate investment returns.
Al-Wadiya continued: "The good thing about Dubai is that it provides an attractive formula for investors, as it has a legal and legislative infrastructure, a promising future and a strong economy, and it has elements that encourage any investor to invest compared to global cities," expecting an increase in the investment return in the long term.
He added: "Globally, there are other cities that may give a better return, but the high return always comes with risk," pointing out that cities such as the French capital, Paris, where the rental return does not exceed 2.5 or 3%, with very high taxes of up to 10%, up to Besides the high real estate prices.
Al-Wadiya believed that some of the effects in the investment return as a result of the pandemic are temporary, noting that the return decreased slightly, due to the link between the sale prices and values of real estate and the investment and rental return, when the price of real estate decreased, with it rents.
He explained that rental returns in Dubai range between 6 and 6.5%, and may reach higher or lower, depending on the type of real estate asset and the region in which it is located.
Al-Wadiya stressed that 2021 has proven to be the year of opportunities, as there are noticeable increases in real estate prices, and the demand for them has increased significantly, noting that rents have begun to gradually recover.
He said, "Recovery does not take place quickly, but rather gradually and deliberately, and in the long term, and this is a positive sign."
Al-Wadiya believed that the future of the real estate market is promising, given that the UAE invests in developing itself, real and legal infrastructure, and legislation that attracts capital from all over the world, and this is what happens in the golden residency decision, and economic development plans.
global choice
For his part, real estate expert Mohammed Abu Hareb said that Dubai is among the best cities in the world in terms of investment returns on real estate due to its strategic economic location.
He added that the emirate maintains its luster in terms of high investment returns, compared to capitals around the world, adding that the investment return in Dubai reaches 6% annually, currently of the value of the property, and if compared to other capitals and major cities, it ranges in Montreal, Canada between 4.5 and 5%, and it reaches 3% in Paris and New York, and this percentage drops to 2.5% in Singapore, and 2.4% in Hong Kong, indicating that this distinction makes Dubai the best choice for foreign investors when buying real estate.
With regard to the impact of the investment return during the pandemic period, Abu Hareb said that the annual returns were severely affected all over the world, but in Dubai they were affected by about 10 and 15% of the returns recorded in 2019, and reached 8%, and then decreased during the pandemic to range between 6 and 7 % in the middle.
international standing
As for the General Manager of "Al Habtoor Group", Ghaleb bin Kharbash, he said that global economic indicators indicate that Dubai is one of the first advanced centers in the world in attracting investments by international sovereign funds in the real estate and hotel fields.
He added that Dubai occupied this position, thanks to its ready and qualified infrastructure in all economic and investment facilities, as well as investment protection legislation, which contributes to the flow of liquidity to the emirate.
He stressed that the strength of Dubai's economy regionally and globally supported the real estate sector, to provide returns ranging between 6 and 9% during the period before the "Corona" pandemic until now.
He continued, "The world was affected by the pandemic, but Dubai's interaction with the crisis by launching economic stimulus packages contributed to the significant improvement that we are witnessing in all fields now."
He pointed out that "Expo 2020 Dubai" will be the largest event and the strongest engine for the emirate in terms of economy, industry and trade, expecting a real estate return of 9%, according to the region.
• Dubai provides an attractive formula for investors: a legal and legislative structure, a promising future, and a strong economy.
Returns are stable
FEM Real Estate CEO Firas Al-Masdi said that when we compare Dubai with other cities that provide similar infrastructure, the emirate leads all cities in terms of real estate revenues.
He added that the return in the main locations in Dubai is 6% net compared to other cities such as London (between 1 and 1.5%), stressing that the returns are currently stable and there is no decline in them.
return balance
The Chairman of the Board of Directors of Al-Waleed Investment Company, Muhammad Al-Mutawa, said that the investment return on real estate in the world ranges between 3 and 4%, but it was affected during the pandemic crisis.
He added that the return in Dubai during the nineties until the first decade of this century amounted to 10%, and after 2010 it became 8%, and in recent years it ranged between 5 and 6%.
He expected the real estate yield in Dubai to be balanced with international rates to within 4 or 5%.
high rates
The CEO of Binghatti Real Estate Development Company, Mohammed Binghatti, said that the rental yield in Dubai is considered one of the highest global rates, because it sometimes reaches two figures;
(10% and above in some areas of Dubai).
He added, "It is difficult for any city around the world to obtain these rates, and therefore, it is an advantage that distinguishes Dubai from others," referring to areas in the emirate, where the average rental return ranges between 7 and 9%.
He said that this is very good and encouraging for investment.
Binghatti added: "When comparing with cities such as London, New York or Beijing, we find real estate returns in these capitals almost more than 3%, which cannot be compared in any way with returns in Dubai, which exceed double these levels."
He stressed that the real estate market showed solidity in the face of the crisis, and demand increased significantly, expecting the demand to complete the upward march thanks to the state's directions to grant long-term visas, in addition to the positive effects of "Expo 2020 Dubai", which will have a very good return on rents and housing during next period.
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