Dubai real estate was a particularly hard-hit asset sector in the aftermath of the epidemic. Experts currently predict that it will return, albeit with a bit of delay.
What does this imply for purchasers and investors? With the present pandemic background, it has been generally advised that individuals seeking to join the new market have a somewhat longer-term view. Numerous macro variables like financing availability, banks’ risk willingness to lend, and employment market recovery are all in play.
Fluctuations in property due to a pandemic are made more accessible.
However, when worldwide pandemic-related anxiety dissipates and various breakthroughs surrounding a possible vaccine emerge, an economic rebound is in sight — resulting in a recovery in all aspects of an economy. This is great news for UAE real estate investors, especially the real estate sector, which accounts for almost 40% of the country’s economic development.
So, suppose you have the cash and the means to finance a mortgage today. In that case, property experts and analysts advise that now is a fantastic time to purchase since values are favorable and the cost of real estate-related money is at an all-time low.
But, before we get into the present prospects for real estate funds and associated stock market assets, let’s talk about one of the most important aspects of investing in them. Because market-traded investments are mainly reliant on the performance of the UAE property market, it is critical first to assess how investor-friendly the industry is right now.
Property in The United Arab Emirates Is Becoming More Appealing
The UAE’s real estate sector improved last week in JLL’s 2020 Worldwide Real Estate Transparency Index, a global property consultancy and investment manager (GRETI).
JLL’s GRETI 2020 is a helpful indication of a city’s overall “real estate investment health” and offers a reasonable measure of property market transparency. The index shows the growing appeal of Dubai and Abu Dhabi as international investment centers within the region in this year’s edition.
Multiple experts rate Dubai’s affordability as “good” when compared to other global cities. In contrast, the UBS Global Property Investment Bubble Index rates Dubai as “fairly priced” compared to places such as New York, London, and Paris.
Expats from the United Arab Emirates are among the biggest investors.
According to official statistics published this week, Indians topped the list of real estate investors in Dubai last year. According to the Dubai Land Department (DLD), a total of 5,246 Indians have invested in the emirate’s property market, followed by 5,172 Emiratis.
A total of 2,198 Saudi investment firms have selected Dubai as their investment destination. There are 2,096 Chinese investors in the Dubai housing market, followed by 2,088 British investors. Pakistani investors finished in sixth place with 1,913 investors, followed by Egypt, Jordan, the United States, and Canada.
Expats Have the Highest Investment Value
Indians also led in terms of investment value, pouring out over Dh10.89 billion into the emirate’s property industry last year, followed by Emiratis with Dh8.1 billion, Saudi Arabia with Dh4.92 billion, British investors with Dh3.97 billion, and Chinese nationals with Dh3.65 billion.
Last year, Pakistani investors invested Dh2.79 billion in the emirate’s real estate industry, followed by Jordan, Egypt, France, and the United States.