Real estate agents expected real estate prices in the country to rise by 15% by the end of this year, with the possibility of maintaining these rates until the end of next year, referring to 6 factors, led by the Expo 2020 Dubai and the 50 projects, which will be strong supporters. For the recovery of the UAE economy in general, and the real estate sector in particular.
They explained to “Emirates Today” that the other eight factors are the introduction of new residence systems, the increase in international flights, as well as the success of vaccination operations against the “Corona” virus, and the decline in infections, in addition to the recovery of the job market, and the re-launch of some delayed real estate in Dubai, with Increasing demand for purchase, and attracting more companies by reducing fees, noting that the high prices of building materials and the impact of some supply and supply lines for some raw materials, will raise the prices of the final real estate product.
1: Supporting factors
In detail, the Vice President of the Society of Structural Engineers in London, real estate expert Mohammed Khader Al-Dah, said that real estate prices in Dubai and the UAE as a whole are heading to rise thanks to several supporting factors, most notably the organization of the “Expo 2020 Dubai” exhibition with the great recovery accompanying the exhibition’s activities, and the influx of millions of tourists And investors from all over the world to the UAE in general and Dubai in particular, over the six-month period of the event.
Al-Dah added that the increase in international flights, the success of vaccination campaigns against the “Corona” virus, with the decrease in infections, in addition to the recovery of the job market, are among the factors supporting the rise in real estate prices in the country.
Al-Dah added that the factors also include the relaunch of some delayed projects, the expansion of some companies in their businesses, the return of residents from vacations, and the increasing demand for purchase or rental.
He stated that prices during the past three years were low, expecting prices to rise during the coming period by a rate of between 6 and 8%.
2: Continuing to rise
For his part, CEO of Harbor Real Estate, a lecturer at the Dubai Real Estate Institute, Muhannad Al-Wadiya, said that the pace of price increases in the real estate sector in the country is expected to continue during this September and until the end of the year, due to several factors, the first of which is the Dubai Expo. And the economic impact of the exhibition, with the continued flow of visitors, and the increase in the population of the Emirate of Dubai, will reflect positively on the increase in demand for real estate, in addition to absorbing the supply significantly.
Al-Wadiya explained that one of the most important factors that help increase prices and revive the real estate market, is the change in the mechanism for launching and approving new projects, as previously it was required to open an escrow account that the investor had the land and a percentage of 20 to 30%, but now it is required In the escrow account 50%, which made it difficult for developers to open new projects, and thus the supply will gradually decrease with the increase in demand.
He expected the real estate market in the country to witness a price increase of between 7 and 8% until the end of this year, noting that the largest share will be for the villas sector at a high rate, as it is the most sought-after property.
3: Definite height
The Director-General of the “Royal Liwan” Real Estate Company, Muhammad Hareb Al-Falah, also expected that real estate prices would witness a confirmed rise during the remainder of this year and next year.
He predicted that real estate prices would increase by 10 to 15% for buying and selling, noting that in terms of rent, the market would witness a rise of 10 to 20% during the period of organizing the Expo 2020 Dubai until the end of this year, when it would attract a large number of visitors.
He explained that there are other factors supporting the price hike, most notably the opening of international airlines, and investors heading to the Emirates with reduced fees.
Hareb added that there is another main factor, which is the launch of the “50 projects” to enhance economic sustainability and growth in the country, as well as the availability of green visas in a way that enhances the demand for real estate strongly.
4: Continue to Rise
In the same context, the Chairman of the Board of Directors of Al-Waleed Investment Company, Muhammad Al-Mutawa, said that all indicators of the real estate market confirm the rise in real estate prices in the country, expecting that prices will continue to rise, which began in the villas sector, with the rise in apartment prices currently.
Al-Mutawa added that “Expo 2020 Dubai” is one of the strong factors supporting the rise in prices, in addition to the demise of the negative effects of the pandemic.
He pointed out that confidence in the UAE, the stability of its economy, and its success in dealing with the pandemic, enabled it to gain the confidence of investors, expecting a high demand for buying real estate for the purpose of ownership, in addition to the activity of the rental sector, which is currently stable.
5: Simple Elevations
The general manager of “Future Path” company, Muhammad Al Ali, considered that prices are currently moving at small rates, saying: “This means that prices are high but reasonable, and the reasons for this are due to the control of the (Corona) pandemic and its negative effects in the sector. real estate.”
He added that the stability of the market situation reflects the control of the pandemic, in conjunction with the upcoming organization of the “Expo Dubai”, which enhances demand in the market, expecting an increase in demand for units ready for investment.
6: Relative Improvement
In addition, the General Manager of “Al Habtoor Group”, Ghaleb bin Kharbash, explained that the remarkable relative improvement in the real estate market gives indications of price stability, and the maintenance of a balance between supply and demand, noting that this balance supports the “50 projects”, which are expected for them. To contribute to attracting investments, pushing the economy to grow again, and recovering from the economic effects of the Corona pandemic.
Copperstones Properties 