The positive outlook for the Dubai Property Market has been the fruit of collaborative efforts of new government policies and reforms in the Real Estate sector in the past year. According to analysts, these new programs which have been rolled out in 2019 are incentivizing and enticing more investors.
Although all eyes are on the most-awaited Dubai Expo which is expected to impact the property market, there are still a number of factors that will drive growth in the market this 2020.
We saw several government reforms and policies come into effect the past year. One of which is when the Emirate announced new policies such as granting long-term visas (and permanent residencies) for foreign investors, forming a committee for the offplan market and a higher committee for real estate planning headed by Deputy Ruler Sheikh Maktoum bin Mohammed.
The policies rolled out includes 10-year visas for investors and professionals. While the higher committee for real estate planning is made up of the Emirate’s senior property developers for collaboration to provide a better demand-and-supply balance in the country’s property sector.
Dubai real estate also saw changes in RERA (Real Estate Regulatory Agency) for being responsible in overseeing the property management and brokerage in the Emirate, while the Dubai Land Department is responsible for the registration of rental contracts and the administration of owners and tenants.
Furthermore, the Central Bank of the UAE is looking to ease out policies in lending to the real estate sector.
The Capital, Abu Dhabi, has also started movements in reforming the property sector. Abu Dhabi government revealed its AED 50 billion project which is the Ghadan 21 to stimulate the market.
The Emirate also recently passed laws which allows foreigners to own a freehold property in designated areas (i.e. Saadiyat Island, Abu Dhabi). This will increase foreign direct investment and boost the economy further. Previously, property ownership for foreigners was restricted on a leasehold-basis for a maximum period of 99 years.
Good investor appetite
With both the government and developers’ more rational view in launching new projects, we also expect to have a healthier balance in the supply of properties. Businesses are more likely to focus on developing the right kind of supply based on the needs of the city and its people. With serviced offices and shared or co-working spaces gaining more demand and becoming the preference for businesses.
The offplan market is also on an upward trend with its attractive payment plans that is constantly appealing to new buyers.