Golden Visa, affordability will continue to drive Dubai property market

Over the years, we have seen Dubai introduce a series of initiatives, encompassing simplified financing, low mortgage rates and the rapid enactment of policies aimed at bolstering its vibrant economy.

His leadership also played a pivotal role during the outbreak of the pandemic by setting cautious examples of how a global power can meet disastrous challenges and protect the gains of its economy and the interests of stakeholders – which include local businesses. and international, SMEs and local businesses. businesses – and paving the way for them to propel their businesses to greater heights.

We saw foreign buyers flocking to the city to invest in the real estate market while resident-renters became homeowners for the first time. This trend stems from a wide range of advantages in trade, technological advancements, security and healthcare, which, in unison with strong macroeconomic fundamentals, have cemented the emirate’s position as a global hub for business and tourism that never ceases to amaze.

That said, the latest expansion of Golden Visa coverage will play a fundamental role in attracting foreign buyers and boosting demand for real estate projects.

Consumer-centric transformation

Understanding changing demographics linked to global social and economic transformations helps us make sense of the world we live in. The increase in migration is indicative of a global economic resurgence and a disproportionate increase in economic opportunity in competing geographies.

Leveraging increased migration and talent-driven economic development, the UAE has introduced a Golden Visa Program for a wide range of exceptional individuals who meet certain eligibility criteria. The new visa regime strengthens the position of the United Arab Emirates as an ideal destination to live, work and invest.

With the increase in demand from property investors and resident owners, the Golden Visa program has been extended to cover those who are investing in or buying a secondary or off-plan property for 2 million dirhams.

The recently updated 10-year UAE Golden Visa regulations are a fantastic move to boost real estate investment even further, especially with the flexibility associated with the new rules, which will entice residents as well as ‘hunters’ to l foreigner to invest. in the country for the long term and allow non-residents to make the United Arab Emirates their second home.

The facts behind the numbers

The real estate market is at the start of a pronounced upward trajectory. The market is still seen as a buyer’s market, with undervalued real estate and prices in Dubai being more attractive than in other major metropolises.

Match buyer expectations to budgets

Affordability is a driving force driving the real estate market forward, according to the results of a Reuters poll. Housing prices in Dubai are expected to rise steadily over the next two years, driven by demand from foreign investors attracted by depressed property prices.

However, analysts warn that higher interest rates and a lack of affordable housing could limit the volume of transactions to some extent. In terms of transaction volumes, the Dubai property market recorded over MAD 170 billion from January to June 2022. Sentiments in the Dubai property sector remained optimistic and reached an all-time high on the back of new related initiatives and regulations. visas to attract foreign direct investment. . The resulting surge in values ​​and transaction volume in terms of rents and real estate sales is expected to continue through the end of the year.

Accept lower mortgage growth

We expect mortgage transaction volume growth to slow due to interest rate increases, which will be partially offset by favorable payment plans. Although geopolitical tensions are a major risk, we expect Dubai to spark interest as a safe haven for wealthy individuals to establish their footprint.

Additionally, the supply and demand dynamics in the Dubai property market have transformed significantly from what they were before. This is largely due to the right types of units on offer, in terms of location, connectivity, amenities, build quality and scenic views, which are in high demand and selling out quickly, despite the notion of oversupply. .

In addition, environmental, social and governance standards will play a determining role in investment and purchasing decisions in the immediate future. Dubai’s gains in transparency rankings, led by new regulations around market-leading practices, beneficial ownership tracking and sustainability reporting, and improved digital services will redefine the market and attract overseas buyers as well as new patterns of buying behavior.

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