Out of the box

The future of the real estate sector

Ismail Al Hammadi

May 24, 2022

The world is witnessing a lot of political and economic events and tensions that cast a shadow on the real estate market, and from one moment to the other the prices of some real estate rise and fall others, and this is what creates a state of uncertainty for dealers in the real estate sector, and makes investors feel anxious, and they make hasty decisions that cause losses to them. Experience has proven this during previous periods of market fluctuations.

In such a case, it is generally advised that investors maintain their calm and not rush to make decisions that negatively affect the management of their investments, knowing that in such cases, real estate assets are among the best investments, to maintain financial portfolios, and are considered a safe haven in all circumstances and fluctuations. market.

Today we are going through a wave of global inflation, the results of which are the rise in the prices of raw materials for construction, and with it the rise in construction costs, coinciding with the rise in interest rates on the expected real estate loans, at the beginning of the third quarter of the year. from the future.

But it should be noted that the future of the real estate market in general is not determined by the rise in building materials, nor its costs, nor interest rates.

Relatively affect, yes, but it is not a main indicator to determine the future of the market and the sector.

The future of the real estate sector is determined primarily by the population density, the level of performance of the business environment and commercial activities, the nature of government policies to create a unique living environment and attract the interest of investors, and internal stability factors during the turbulence of the surrounding external conditions.

If we drop these factors on the local real estate sector to know its future, we will find them all available, and this is what pushes it forward, to achieve higher levels of demand.

According to recent statistics, Dubai alone managed to attract more than 100,000 new residents, during a period of no more than a year and a half, from the end of 2020 to April 2022, while other statistics indicate an increasing influx of residents and investors to settle and invest in Dubai, in light of Developments of the Russian-Ukrainian war.

Between the availability of security and stability for residents, and the capital invested, the government continues to pursue unique strategies to enhance the country's position on the list of options in the field of residence, investment and work.

All this gives a strong impetus to the local real estate sector and its future.

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