Real estate

Dubai property set to defy fear of global recession – News

Visa reforms, investor-friendly policies and ease of doing business will help Dubai’s real estate market remain resilient and navigate rapidly through the global recessionary trend



Published: Sun Sep 11, 2022 4:09 PM

Real estate in Dubai will continue to thrive and stay on a growth path despite fears of a global recession, as the government’s timely measures to ensure market stability have boosted investor confidence, according to reports. experts.

Analysts, executives and industry experts said Dubai has cemented its position as a global trading, tourism and financial center and that high net worth individuals, millionaires and investors will continue to invest in the property sector.

They said visa reforms, investor-friendly policies and ease of doing business will keep Dubai’s real estate market resilient and that it will steer clear of the global recessionary trend following the Russia-Ukraine crisis. , rising energy costs and global inflation.

Map Stability

Haider Tuaima, director and head of real estate research at ValuStrat, said the Dubai property market was likely heading for medium-term stabilization and any negative sentiment could potentially accelerate this trend.

“Strategic decisions implemented by the government since 2019, balancing supply and stimulating demand in addition to the 2040 urban plan and improving market transparency by openly sharing transactional data, all contribute to driving the real estate market towards healthier and more sustainable growth”, Tuaima told Khaleej Times.

Haider Tuaima, director and head of property research at ValuStrat, said Dubai's property market is likely heading for stabilization in the medium term.

Haider Tuaima, director and head of property research at ValuStrat, said Dubai’s property market is likely heading for stabilization in the medium term.

Dubai property market sales transactions reached almost 160 billion dirhams in the first eight months of this year despite geopolitical tensions, rising global inflation and oil prices. The market is expected to maintain the upward trend, but experts have warned of slowing growth amid fears of recession in major economies such as the United States, China and Europe.

The latest PMI data indicated that economic activity has weakened from the United States to Europe and Asia, heightening fears that soaring prices and the war in Ukraine could tip the world into a recession. The data paints a bleak picture for the global economy, with most central banks still focused on containing inflation by raising borrowing costs.

“Inevitably this will have some impact. However, with Dubai’s solidifying position as a global business and tourist destination, various visa initiatives as well as a range of properties catering to a wide range of buyers, the impact should be mitigated,” he added.

Robert Thomas, head of the agency at real estate consultancy Core, told Khaleej Times.

Robert Thomas, agency manager at property consultancy Core, Dubai's continued positive management of Covid, the business and tourism-friendly environment and ongoing visa reforms have made it an attractive proposition for residents and international buyers.

Robert Thomas, agency manager at property consultancy Core, Dubai’s continued positive management of Covid, the business and tourism-friendly environment and ongoing visa reforms have made it an attractive proposition for residents and international buyers.

Referring to positive catalysts, he said Dubai’s continued positive management of Covid, business and tourism-friendly environment and ongoing visa reforms have made it an attractive proposition for residents and international buyers.

“With strong transaction activity and rising occupancy levels, supply and demand dynamics are at relative equilibrium. Additionally, buyers have the flexibility to choose from a wide range of products across entry points with property-related visas, making Dubai a favorable investment destination,” said Thomas.

Record sales

Ata Shobeiry, CEO of Zoom Property, said Dubai property will emerge stronger despite some challenges on the global front.

“After a strong performance in the first half and record sales in July and August, the Dubai property market is well positioned to weather the challenges posed by the global recession. I believe the market will remain stable in this regard and continue to grow. ‘attract foreign investors and HNWIs,’ Shobeiry told the Khaleej Times.

“The reformed visa rules, investor-friendly policies and the stability they provide to investors are major factors that will drive the real estate market through 2022 and beyond,” he said.

Resilient market

Yousuf Fakhruddin, CEO of Fakhruddin Properties, said Dubai was known to be a resilient market and with better regulations, stronger surveillance and an influx of foreign investment.

“Dubai’s property market will continue to thrive and navigate any slippery slope quickly. Although the country’s leadership has positioned the UAE strongly in the global marketplace, which will continue to help build positive sentiment and confidence. But , like any other country, we have to be prepared for any global economic phenomenon, and the UAE being an agile country, it has the ability to come out stronger,” Fakhruddin told the Khaleej Times.

In a perfectly positioned and progressive country like the UAE, he said there are many growth drivers for Dubai’s property sector.

“The fact that the United Arab Emirates is a global nation ready to welcome people from any country in the world has made it possible for more people to start new businesses to move here and settle here. The way this country offers everything from lifestyle to luxuries for residents has created a sense of optimism and satisfaction among expats keen to live and invest in the country.The recent increase in the number of new visas for business and employment in the private sector reinforces the belief system for the real estate industry,” he said.

No fear of recession

Lotfi Ayoub, founder and CEO of Quatro Properties, Dubai real estate will not be affected by the global economic downturn.

“I believe that the Dubai property market will not be affected by the global recession, even though European policymakers have taken several measures to control inflation. With over 19 years of experience in the GCC, I believe that the market Dubai real estate has proven its resilience as they have seen massive transactions this year, even most of the master developers are out of stock of off-plan properties,” Ayoub told the Khaleej Times on Sunday.

However, timely measures taken by the government and initiatives proposed by development companies have supported a rapid recovery, and now Dubai’s property market is holding firm, producing record numbers month after month, he said. .

“The emirate has recorded massive transactions in the luxury segment. I have never witnessed such growth in luxury properties in the past 10 years. Now the government has launched new initiatives to ease residency rules offering golden visa, investor visa and extensions for post-expiration residency among others,” he said.

“We have noticed various positive indicators such as a higher number of mortgages, rental contracts and an increasing demand for properties in the emirate. Many new exhibitions will take place in Dubai by 2025 and new applicants for “Job will be entitled to a six-month visa from Canada, the United States and Europe. No one can make life as easy as the United Arab Emirates,” Ayoub explained.

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