They expected a strong return of demand for real estate “under construction” … and the trend for sustainable investments

Real estate agents are optimistic about 2023.. and expect continued demand for luxury real estate and villas

• Expectations that the new year will witness good indicators in the real estate market and an increase in rental and sale prices.

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Real estate agents expected that 2023 would be a distinguished year for the real estate sector, and that it would witness the opening of new projects, with the continued pace of recovery, as a result of government efforts to develop the legislative and infrastructure.

They attributed to "Emirates Today" the positive expectations due to several factors, including security and safety in the UAE, the laws of attracting investors, and the ease of opening "business".

They pointed out that there is a greater demand for villas, compared to residential apartments, in addition to a demand for luxury real estate, and the presence of the “final buyer” category in the market, who seeks to live in Dubai, the city of security and safety.

They pointed out that the prices of real estate assets in Dubai are the most stable, and achieve greater returns than any other investment safely, and Dubai will witness attracting a new type of investors looking for sustainable and profitable investments in the long term.

They also expected a strong return of demand for real estate “under construction”, due to the financing facilities offered by developers away from banks and interest rates, which encourages developers who offer projects for middle-income people to return, to provide payment facilities.

Special year

In detail, Raad Ramadan, the general manager of the Awad Gargash Real Estate Company, said that 2023 will be a distinguished year for the real estate sector, and will witness the opening of new projects to keep pace with the growing demand.

Ramadan expected that the new year would witness good indicators in the real estate market, and an increase in rental and sale prices by between 10 and 20%, attributing the positive expectations for the new year to several factors, including security and safety in the UAE, and laws to attract investors.

Ramadan pointed out that the majority of investors are from Europe, especially Britain, pointing to the efforts of the Dubai government and the Dubai Land Department, which is making a tremendous effort to complete transactions and support investors, in addition to the approved real estate offices that deal with investors, and the infrastructure in the country.

Continued recovery

For his part, Managing Director of the Harbor Real Estate Company, Muhannad Al-Wadiya, said that the year 2023 will witness the continuation of the pace of recovery in the real estate sector, as a result of government efforts to develop the legal and legislative infrastructure, to protect the rights of all parties to the real estate equation, in addition to the great efforts made It is being undertaken by the country as a whole, and Dubai, to attract a high quality of population.

Al-Wadiya stated that the population is witnessing a noticeable increase, according to the Urban Plan 2040, in a deliberate way, to attract capital, by providing golden residence for investors, creators and professionals, who enjoy high purchasing power, which contributes to increasing demand.

Al-Wadiya stressed that “with the economic recovery, the real estate sector will revive,” pointing out that the UAE was able to overcome the “Corona” crisis in a smart and deliberate way, so that the investment movement returns, at a time when tenants feel an increase in rental values, which is something that prompts them to buy.

Al-Wadiya indicated that units will be offered that take two to four years to enter the real estate market, which increases the pressure between supply and demand, and raises prices by a rate ranging between 13 and 20%, depending on the type of property: commercial, residential, or industrial.

He confirmed that there is a greater demand for villas, compared to apartments, as well as a demand for luxury real estate, with a shortage of housing units for people with limited incomes.

Al-Wadiya pointed out that there is a category of "final buyer" in the market, "and he is the one who seeks to live in the city of safety and security... Dubai."

luxury real estate

In turn, the Chairman of the Board of Directors of Al-Waleed Investment Company, Muhammad Al-Mutawa, expected that the year 2023 would witness the continuation of the real estate boom, but at a lower rate than the year 2022, which witnessed a significant increase in real estate prices.

He said, "The demand will continue to exist, but at a lower rate, with an increase of between 10 and 20 percent, and the demand will remain more for luxury real estate."

Al-Mutawa attributed the continued demand for the real estate sector to several factors, including stability, visa and golden residency laws, and the economic crisis affecting the countries of the world, which drives investors to migrate to invest in the Gulf countries in general, and the UAE in particular.

stable year

In the same context, real estate consultant Ahmed Al-Dawla said that the past year 2022 was positive at the level of the real estate sector, supported by a large demand on the part of foreign investors, at a time when the number of tourists increased and real estate prices increased.

The country expects that 2023 will be a stable year, in which investors tend to invest in the Emirates, for reasons notably the ease of opening companies, the golden residency in Dubai, in addition to the ease of living compared to European countries, and the Russian-Ukrainian crisis that prompts investors to transfer their businesses from Europe to Dubai.

The state expects that the buying and selling movement will witness great stability in 2023, stressing the need to increase real estate development to meet the needs of buyers who will settle in Dubai during the coming period.

investment opportunities

Saleh Tabakh, CEO of Al-Andalus Courtyard Real Estate Development Company, said that the changes made by the Dubai Land Department, in building classifications and linking them to rent increases, will contribute to a decline in rents in certain areas, which will increase the demand for real estate in those areas, and thus raise The value of these assets, and the formation of price equilibrium in various areas, rather than focusing on specific areas that witnessed higher demand than others.

Tabakh added, "There is no doubt that high financing costs ultimately fuel asset prices, knowing that real estate asset prices in Dubai are the most stable, and securely achieve greater returns than any other investment."

Cook expected that the real estate sector will benefit in 2023 from the repercussions that are occurring in the world and its greater openness to Dubai, at a time when the emirate will begin to attract a new type of investor looking for sustainable and profitable investments in the long term.

He explained that the year 2022 witnessed a great focus on luxury real estate, but the global situation and the lack of economic security in most European countries will push investors to search for investment opportunities in Dubai more, in addition to the upcoming Chinese openness to the region.

universal sign

Tabakh believed that the market will witness more distribution in the different regions of Dubai, and an increase in demand by investors looking for real estate with stable rental returns, and this will be more mature and continuous in the new year, because of all the infrastructure that has been built and the amazing marketing capabilities of Dubai, which has become a landmark. Global with new standards, so that the emirate has its own standards that are famous for economic security, transparency of laws, and diversity in investment options.

Cook expected a strong return of demand for real estate "under construction", due to the financing facilities offered by developers away from banks and interest rates, which encourages developers who offer projects for middle-income people to return, to provide payment facilities.

Al Nuaimi: The real estate market is healthy

Real estate consultant Abdullah Kazem Al Nuaimi expected that the real estate sector would witness during the first half of 2023 a continuation of the momentum, with an increasing demand by investors in the real estate sector in Dubai, which will witness the sale of projects significantly, and an increase in demand.

Al-Nuaimi added that the real estate market in Dubai is healthy, and the sector is moving towards stability, pointing out that the increase in bank interest is slowing down the movement of the real estate market.

Al-Nuaimi expected the real estate sector to continue to rise in the first half of the year, with a slowdown in the rise during the second half of it.

Al-Hafiti: A positive picture

The real estate consultant, Muhammad Al-Hafiti, expected that the real estate market would continue in a positive manner during the year 2023.

He stressed that Dubai is still attractive to investment for several reasons, including the ease of doing business and the availability of security and safety, noting that the recent period witnessed an increase in rental prices and an increase in the demand for luxury real estate, and this will continue during the year 2023.

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