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Real estate and tourism ... complementarity and mutual benefits

Ahmed Al-Dawla

May 23, 2021

Certainly, the real estate sector in Dubai is benefiting from the recovery of tourism, amid a clear integration of the two sectors, which cannot be separated, especially since the emirate is currently a real window for foreign investors, to see the many opportunities available during their visit to the emirate, after it has become at the forefront of the most global investment destinations. Readiness and flexibility, thanks to the policies and measures it has taken to meet the challenge of the "Covid-19" pandemic.

When a tourist visits Dubai, he - as he learns about the splendor and beauty of the emirate, the architectural and real estate renaissance in it, and the development of its world-class infrastructure - also gets acquainted with the legislation and laws governing the ownership of real estate, or the launch of a new business activity.

Upon the visit, the visitor monitors the extent of urban development and the huge real estate projects that drive the economy strongly, by injecting a lot of money and the availability of hundreds of thousands of job opportunities.

Mostly, the visitor (a potential investor) then starts establishing long-term investments, and this provides a strong addition to the investment demand for real estate from foreigners, which enhances the market recovery and supports price rises.

The influx of tourists to the emirate and the expected growth in the tourism sector will contribute to reviving the real estate market, expanding the activity of real estate development companies, and raising the demand for real estate units, especially rooms, hotel apartments and vacation homes, which reduces the supply and allows the launch of new projects, in addition to improving prices.

Therefore, I see that the tourism sector in Dubai supports its real estate indirectly, and provides alternative opportunities for the growth of demand for the purchase of housing units, especially after the remarkable success in controlling the "Covid-19" epidemic, and taking flexible and highly efficient measures that contributed to smoothly overcoming the repercussions. To become the least affected countries by the crisis, and of course the pandemic had a clear impact on changing demand patterns, amid a great demand for luxury villas and apartments to be owned.

The rapid and decisive response of the leadership in dealing with the challenges of the crisis came to reflect the safe future of real estate investment and tourism alike, and we can say that launching major real estate projects strongly drives the economy by pumping money into the real estate market, as well as driving the prosperity of other sectors directly or directly related. Indirectly, most notably tourism, travel, services, retail, health, education, and the building materials industry.

In the context of the continuous development of legislative frameworks in support of various economic sectors, the issuance of the Time-Sharing Law, last December, was of great importance, as an initiative that would contribute to encouraging tourism and the real estate sector.

Dubai stands out as the best real estate investment destination in terms of high returns that reach 7 and 8%, as well as security and fair legislation that takes into account the interests of all parties, and here real estate tourism stands out, as one of the areas in which the UAE excels.

I find that the real estate sector is among the best economic sectors witnessing a strong recovery from the pandemic, after the observed activity during the first quarter, at a time when accelerating vaccination operations had a role in improving confidence in the future of investment in the country, and government reforms over the last 12 months have had a role in improving demand.

President of the real estate company "On Blanc"

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