They attributed it to the increase in the investment attractiveness of the Emirates, the rental return and the change in the prices of building materials
Realtors expect real estate prices to rise by up to 20% during 2022
The UAE has a comparative advantage as a magnet for investors and developers from all over the world.
Photography: Patrick Castillo
picture
Realtors expect real estate prices in the UAE to rise by 20% this year.
They attributed, in statements to "Emirates Today", the expected increase in real estate prices, to several reasons, most notably the increase in the investment attractiveness of the state, especially after the issuance of the new residence system, the high rental return, and the change in the prices of building materials due to global changes.
Rental prices
In turn, the Chairman of the Board of Directors of Al-Waleed Investment Company, Muhammad Al-Mutawa, said that “there is an increase in real estate prices, especially in conjunction with the increase in the investment attractiveness of the state, especially after the issuance of the new residence system,” noting that “the coming period will witness instability in countries the world, which gives the UAE a comparative advantage as a magnet for investors and developers from all over the world.”
He pointed out that "the rental yield has significantly improved during the (Corona) period, which will undoubtedly benefit the improvement in the price of the property," expecting an increase in real estate prices by up to 20%.
tourist destination
For his part, the CEO of Binghatti Real Estate Development Company, Muhammad Binghatti, confirmed that “the increase in prices may continue until the end of the year, and we do not rule out that it will reach 15%,” noting that “there is no exaggeration in prices, because these prices are The level of Dubai reflects a prestigious global economic and tourism destination, and has become one of the best options for investors globally, due to main factors, including the attractive rental return and value for capital.”
Bin Ghati stressed that "the current period is an appropriate period for purchase, in conjunction with the amendments that came within the residency laws, which are in the interest of the economy in general, and motivate every investor who wants to establish a business and have a continuous presence in the developing economic environment in Dubai."
High levels To this, the real estate expert and Chairman of the Board of Directors of the “W Capital” real estate brokerage company, Walid Al Zarooni, said that “the levels of real estate prices in Dubai are high,” expecting that prices will continue to rise over the next two years and the increase may exceed 20%, annually.
He stressed that the new residency system will significantly increase the investment attractiveness factors in the UAE, and will create purchasing power for the middle class capable of spending, by attracting capital strongly.
Al-Zarouni pointed out another important factor that could increase real estate prices, which is a factor that changes the prices of building materials, and this factor is variable and has a direct relationship with the price of the property.
Gradual increase
For his part, the managing director of Harbor Real Estate Company, Muhannad Al-Wadih, said that "there is a noticeable increase in real estate prices that began in 2021 gradually and continues until now," explaining that "the expected percentage until the end of this year is proceeding at the same pace, and may reach to 20%, especially since we see a significant increase in the prices of raw materials.”
Al Wadiya continued, "The rate of economic growth will rise, which will positively affect the real estate market, and there are strong expectations of an increase in the UAE's GDP."
He added that "real estate developers are seizing opportunities greatly," calling for the necessity of after-sales service and providing the product with high quality, explaining that "the time is always appropriate to buy, as real estate is the best asset for investment in the long term, especially since the UAE has a promising future, and it has the ingredients Exceptional confirms that buying now is a good opportunity.”
positive trend
In turn, the general manager of the "Royal Liwan Real Estate Company", Muhammad Abu Hareb, said that "there is an actual increase in real estate prices during the last period," noting that "the real estate market began to change and take a more positive trend in the fourth quarter of 2021, due to an increase in property prices." The demand for ready-made properties, especially in the secondary market, confirms that the market has entered the stage of economic recovery from the (Corona) pandemic, which helped in the recovery of real estate prices in the Dubai market very quickly.
Abu Hareb expected an increase in real estate prices by 15-20% this year, pointing out that "there is no exaggeration in pricing, due to several factors, including the increase in real estate investment coming to the UAE, and the high rental return."
He stressed that "the time is right for new investors to enter the real estate market, as a result of the continuous rises in the prices of building materials," wondering: "Will the current prices hold, or will there be increases in the third or fourth quarter?" .
Selling price increase
For his part, the General Manager of Awad Gargash Real Estate Company, Raad Ramadan, said that “there is an increase in real estate selling prices as well as rents, and the matter varies from region to region and from site to site,” explaining that “areas have witnessed an increase, such as (Dubai Marina). and Jumeirah Beach Residence, and TECOM).
Ramadan expected that prices will continue to rise during the current year, adding that “the rates of price increases during the year will range between 10 and 20%, and differ from one region to another and the distinguished location is next to the age of the property.”
He revealed that there are developers who exaggerate prices, but they are trying to seize opportunities, with their reliance on supply and demand in the market, as the higher the demand, the lower the supply and therefore the prices will rise.
Ramadan indicated that “the current prices encourage investment by 50%, and are not encouraging for the same,” stressing that preferential prices during the pandemic period and before were very suitable for purchase.
Follow our latest local and sports news and the latest political and economic developments via Google news