Realtors: with rates of up to 15%, led by "Expo 2020 Dubai" and "Fifty Projects"
10 factors that raise real estate prices in the country until 2022
Realtors confirmed that all market indicators confirm the rise in real estate prices in the country.
Real estate agents expected real estate prices in the country to rise by 15% by the end of this year, with the possibility of maintaining those rates until the end of next year, referring to 10 factors, led by the Expo 2020 Dubai and the 50 projects, which will be strong supporters. For the recovery of the UAE economy in general, and the real estate sector in particular.
They explained to "Emirates Today" that the other eight factors are the introduction of new residence systems, the increase in international flights, as well as the success of vaccinations against the "Corona" virus and the decline in infections, in addition to the recovery of the job market, and the re-launch of some delayed real estate projects, with Increasing demand for purchase, and attracting more companies by reducing fees, noting that the high prices of building materials and the impact of some supply and supply lines for some raw materials, will raise the prices of the final real estate product.
In detail, the Vice-President of the Society of Structural Engineers in London, real estate expert Mohammed Khader Al-Dah, said that real estate prices in Dubai and the UAE as a whole are heading to rise thanks to several supporting factors, most notably the organization of the "Expo 2020 Dubai" exhibition with the great recovery accompanying the exhibition's activities, and the influx of millions of tourists And investors from all over the world to the UAE in general and Dubai in particular, over the six-month period of the event.
Al-Dah added that the increase in international flights, the success of vaccination campaigns against the “Corona” virus, with the decrease in infections, in addition to the recovery of the job market, are among the factors supporting the rise in real estate prices in the country.
Al-Dah added that the factors also include the relaunch of some delayed projects, the expansion of some companies in their businesses, the return of residents from vacations, and the increasing demand for purchase or rental.
He stated that prices during the past three years were low, expecting prices to rise in the coming period by a rate of 6 to 8%.
For his part, CEO of Harbor Real Estate, a lecturer at the Dubai Real Estate Institute, Muhannad Al-Wadiya, said that the pace of price hikes in the real estate sector in the country is expected to continue during this September and until the end of the year, due to several factors, the first of which is the Dubai Expo. And the economic impact of the exhibition, with the continued flow of visitors, and the increase in the population of the Emirate of Dubai, which will reflect positively on the increase in demand for real estate, in addition to absorbing the supply significantly.
Al-Wadiya explained that one of the most important factors that help increase prices and revive the real estate market, is the presence of a change in the mechanism for launching and approving new projects, as previously it was required to open an escrow account that the investor had the land and a percentage of 20 to 30%, but now it is required In the escrow account 50%, which made it difficult for developers to open new projects, and thus the supply will gradually decrease with the increase in demand.
He expected that the real estate market in the country would witness a price increase of between 7 and 8% until the end of this year, noting that the largest share would be for the villas sector at a high rate, as it is the most sought-after property.
In turn, the Chairman of the Board of Directors of "W Capital" real estate brokerage, Walid Al-Zarouni, said that real estate prices in Dubai are expected to rise by 10 to 15%, for several reasons, including the "Expo 2020" exhibition, and the granting of golden residencies, considering that this will push Prices to rise.
Al-Zarouni indicated that there are other factors that will also help in the rise in real estate prices during the coming period, including the "50 projects", including green residence and free residence.
He pointed to a number of other supporting factors, including the increase in the number of international flights, the success of vaccination campaigns against "Corona", with the increasing demand for purchase, and the attraction of companies by reducing fees.
The Director General of the "Royal Liwan" Real Estate Company, Muhammad Hareb Al-Falah, also expected that real estate prices would witness a confirmed rise during the remainder of this year and next year.
He predicted that real estate prices would increase by 10 to 15% for buying and selling, noting that in terms of rent, the market would witness a rise of 10 to 20% during the period of organizing the Expo 2020 Dubai until the end of this year, when it would attract a large number of visitors.
He explained that there are other factors that support the rise in prices, most notably the opening of international airlines, and investors heading to the Emirates with reduced fees.
Hareb added that there is another major factor, which is the launch of the "50 projects" to enhance economic sustainability and growth in the country, as well as the availability of green visas in a way that enhances the demand for real estate strongly.
continue to rise
continue to rise
In the same context, the Chairman of the Board of Directors of Al-Waleed Investment Company, Muhammad Al-Mutawa, said that all indicators of the real estate market confirm the rise in real estate prices in the country, expecting that prices will continue to rise, which began in the villa sector, with the rise in apartment prices currently.
Al-Mutawa added that “Expo 2020 Dubai” is one of the strong factors supporting the rise in prices, in addition to the demise of the negative effects of the pandemic.
He pointed out that confidence in the UAE, the stability of its economy and its success in dealing with the pandemic, enabled it to gain the confidence of investors, expecting a high demand for buying real estate for the purpose of ownership, as well as the activity of the rental sector, which is currently stable.
The general manager of “Future Path” company, Muhammad Al Ali, considered that prices are currently moving at small rates, saying: “This means that prices are high but reasonable, and the reasons for this are due to the control of the (Corona) pandemic and its negative effects in the sector. real estate.”
He added that the stability of the market situation reflects the control of the pandemic, in conjunction with the upcoming organization of the "Expo Dubai", which enhances demand in the market, expecting an increase in demand for units ready for investment.
In addition, the General Manager of Al Habtoor Group, Ghaleb bin Kharbash, explained that the noticeable relative improvement in the real estate market gives indications of price stability, and the maintenance of a balance between supply and demand, noting that this balance supports the "50 projects" expected for them. To contribute to attracting investments and pushing the economy to growth again, and recovering from the economic effects of the “Corona” pandemic.
Bin Kharbash said that the real estate sector will be one of the biggest beneficiaries of these initiatives.
In a related development, the CEO of Standard Real Estate Management, Abdul Karim Al Mulla, expected that the continuous rise in the prices of building materials and the impact of some supply and supply lines for some raw materials would cause the final real estate product prices to rise.
In addition, he said, there is an increase in demand for real estate that will appear in the local market during the coming period, in conjunction with the presence of many investors interested in living in the Emirates, especially in conjunction with the Expo 2020 Dubai.
Stability...and a balance between supply and demand
Stability...and a balance between supply and demand
The real estate consultant, Saleh Tabakh, expected the stability of real estate prices in the country during the next year, considering that it is a very healthy and fruitful condition for the market, as the current prices are at normal levels and achieve a good equation between the sale price and the rental value with excellent returns.
Tabakh said that there are several factors that support price stability during the coming period, including the large supply, which is expected to enter the market during 2022, with the activity of the development movement again due to increased demand, with many reasons that motivate developers to launch new projects.
He added: “We will enter into a positive state of stability with an increase in the prices of some areas, such as areas overlooking the sea in particular, and relative stability in the prices of real estate under construction, and secondary areas that achieve an excellent proportion between the purchase price and the rent value, and there is an increase in supply and development in areas such as (Dubailand) and (Meydan), to achieve a healthy balance between supply and demand.”
The 10 factors
The 10 factors
■ «Expo 2020 Dubai».
■ «Fifty projects».
■ Introducing new residence regulations.
■ Increase international flights.
■ The success of vaccination operations and the decline in "Corona" injuries.
■ Job market recovery.
■ Re-launch of some delayed projects.
■ Increasing demand for purchase.
■ Attracting more companies by reducing fees.
■ High prices of building materials.
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