Inayat-ur-Rahman

The real estate market in the UAE is all set to take advantage of great momentum before Expo 2020 Dubai starts in October next year as all stakeholders particularly developers and investors are fully confident that the real estate demand will boost in the coming months.

This was stated by a leading real estate expert and Chairman of W Capital Real Estate Brokerage Company, Walid Al Zarouni,  during an exclusive interview with Gulf Today.

Al Zarouni stated that, based on the latest market data, the future supply, and the plans put in place to take advantage of the “Dubai Expo 2020” opportunity, which is expected to raise the demand for real estate, we can say that the sector is ahead of the momentum that will contribute to boosting real estate prices after two years of relative slowdown in the market.

“ All these indications show that the real estate market in Dubai is preparing for the great momentum expected before the “Expo 2020”,” he added.

“Property Finder” believe that there are clear signs of improvement in the real estate market in Dubai, where the previous 12 months recorded the largest number of deals in the history of the emirate. An analysis of the Land and Property Department information, shows that Dubai recorded a total of 44,590 real estate deals from November 2018 to November 2019, which is the largest number of deals registered in 12 months in the history of the Dubai real estate market.

There were also 36,799 residential units sold in a period of 11 months starting from January to November 30 this year , which is the second highest number after the number registered in 2017, when 37,388 housing units were sold . However, adding the operations recorded in December, that could make 2019 record number of unit sales in 10 years.

“Fam properties” reported that 59,800 properties are scheduled to be delivered in Dubai during 2019, about 33,800 of which are in the final stage. They expect price equilibrium by Expo 2020, especially since there are 46,000 additional units are to be delivered after June 2020.

Walid Al-Zarouni added that it is expected to reap the fruits of the entire rules and laws, which were issued during the past two years, to regulate and stimulate the real estate sector in the UAE. They will boost demand during the next year, in addition to activating more smooth laws regarding real estate ownership. These initiatives have had a positive impact on real estate investors regarding the future of the sector. They will also play an important role in stimulating investment and maintaining the momentum resulting from the vital tourism sector even after the end of the Expo.

“The approval of the permanent residence rules “The Golden Card” for investors, entrepreneurs, talented persons, and researchers in the fields of science and knowledge, will continue to provide support to the demand for real estate and absorb the current and future supply,” he said

This will improve the stability of real estate prices. Housing units and office space segments are to be the first winners from the potential positive effects of the new government initiatives.

Al Zarouni expected an exceptional year for the rental market in 2020, with Dubai expected to attract more than 25 million visitors. This means that there will be an increase in the demand for ready and fully serviced apartments, which will give the rental market an additional boost.

According to a report by the Dubizzle website, rental sector in Dubai is expected to be in a big boom in the short-term until 2020, supported by the increase in the number of visitors to the emirate. Many owners resort to renting housing units to take advantage of the licenses of so- called “Vacation Homes”.

The report stated that the short-term lease options give tenants more options and flexibility, as the tenant does not bear the cost of furniture or monthly consumption bills, and it eliminates the need to share deferred checks with the owners, while non-commitment to a long-term contract gives the landlord more flexibility in the use of his property or selling it without any rental restrictions.

Al Zarouni stressed the importance of enhancing the awareness of real estate developers of the need to deliver units in harmony with demand trends, pointing out that some developers deliberately tend to delay hand-outs in the UAE in order to avoid a flood of unit supply.

He called for investors, whether individuals or companies, to exploit and seize real estate opportunities at present, pointing out that real estate prices have reached attractive levels that encourage investors to buy in the UAE in light of the offers and facilities provided by real estate companies, including registration fees, service and maintenance fees for periods ranging from two to four years.