Dubai realty market on solid track due to lucrative business ambiance

Inayat-ur-Rahman, Deputy Business Editor

The UAE real estate sector market is on solid growth track and is marching ahead in 2021 due to major incentives launched by the government and lucrative business ambiance in the country.

This was stated by  Muhammad Binghatti, CEO,  Binghatti Developers during an exclusive interview with Gulf Today, adding that the country has succeeded in providing all public and private services, which greatly contributed to mitigating the expected impact of the pandemic on the real estate sector, thanks to the proactive measures of the government, digital transformation and technological progress.

He noted that these measures also helped in strengthening and supporting various economic activities, and greatly boosted the speedy recovery and resumption of normal economic activity. They are added to a number of measures and packages of initiatives to limit the effects of the virus outbreak.

He stressed the fact that the UAE provides opportunities for success and was up to the challenges. The local economy overcame the crisis, and UAE is leading in the Arab world with indicators of economic recovery from the effects of COVID-19.

Binghatti believes that the rapid handling and smart response by the government to the pandemic contributed to supporting the real estate market in Dubai nowadays.

The sector is showing positive (V) shape recovery, which is characterized by a rapid rise after the decline, especially after the market made a big jump in the number of real estate transactions.

He added that among the other positive indicators in the sector is the increase in cash flow and liquidity locally, after some citizens and residents preferred not to travel, which stimulated domestic spending to buy real estate.

The pandemic also contributed to the "filtering" of real estate companies to keep serious companies that have a real desire of continuity, which helped serious businesses prosper during the pandemic period.

The CEO pointed out that the approaching of "Dubai Expo-2020" gives a glimmer of hope, as there are many companies coming to Dubai from all over the world, to open offices or branches in the emirate. The extensive vaccination campaigns provided by the government, revived the feeling of optimism and had positive effects on the national economy.

He pointed out that price correction, both in the sales and rent markets, had positive effects also in reviving the sector, and contributed to strengthening Dubai's position globally as a destination to live, work and invest. Dubai proved to be the most attractive city for foreigners looking for job in the region.

 Binghatti noted that the market has become more realistic, both in terms of prices provided by developers, offers or commissions paid to real estate brokers, or even in terms of construction costs, as the entire real estate system has become "healthy."