Investors to repose trust on UAE real estate market with more investments

This year, the value of real estate transactions could exceed Dh300 billion as a result of new government initiatives that will further promote market credibility, transparency, and investor confidence.

According to analysts, the government's most recent real estate investment laws will improve investor confidence in the expanding industry and build stronger credibility and openness.

According to analysts, executives, and developers, the government's actions, such as stricter regulations on real estate advertisements and new reporting requirements for property transactions, will stabilize a market that attracted investments totaling more than Dh170 billion in the first seven months of this year. By year's end, they predict that investments in the UAE real estate sector would surpass Dh300 billion.

According to market experts who claimed government statistics, Dubai real estate will continue to develop because it acquired Dh135.5 billion in investments between January and July 2022. Additionally, during the first half of 2022, property transactions totaled Dh22.38 billion in Abu Dhabi and Dh11.2 billion in Sharjah, respectively.

The UAE's total gross domestic product (GDP), according to estimates, is produced by real estate operations to the tune of 5.5% annually. According to Mordor Intelligence, the UAE's residential real estate market is projected to rise by a compound annual growth rate of over 8% between 2022 and 2027.

Investor confidence, market maturity

Recent policy measures, according to Haider Tuaima, director and head of Real Estate Research at ValuStrat, won't impede the industry's expansion.

When asked about strict controls on advertising and increased reporting requirements for real estate transactions might have an influence on the sector's expansion, Tuaima responded, "The short answer is no."

"Building strong regulations by applying more stringent guidelines for property listings will only strengthen market credibility and transparency, perhaps boosting investor confidence moving forward," he said.

New regulations, according to Robert Thomas, head of Agency at real estate consulting firm Core, will mature the market.

The industry, he said, "would more likely mature as a result of these restrictions, which will filter the market with qualified listings and product offerings.

Growth drivers

Specific development factors, including visa reforms, consistent policies, steps to make conducting business easier, and future planning, among others, according to market experts, will continue to support an upward trend in the real estate market for the balance of this year.

According to Tuaima of ValuStrat, "strategic decisions implemented by the government since 2019 help drive the property market towards more healthy and sustainable growth by balancing supply and boosting demand in addition to the 2040 urban plan and improving market transparency by openly sharing transactional data."

The market will be driven by a number of factors in the upcoming months, according to Shobeiry of Zoom Property, who shares confidence in its future.

According to him, the property market would be strongly affected by the "reformed visa regulations, investor-friendly policies, and the stability it offers to investors" for the remainder of 2022 and beyond.