UAE real estate sector to flourish in H2-18

UAE real estate sector to flourish in H2-18
The Emirati real estate sector is now more resilient

By: Mahmoud Gamal

Dubai – Mubasher: The UAE real estate sector is expected to see a better growth in the second six months of 2018 due to the recent government decisions aimed at stimulating the national economy, along with the merger between Emaar Prosperities and Aldar Properties.

Also, the attractive real estate prices and the rapid completion of Expo 2020 Dubai projects will have a positive impact on the sector, managing director of Al Ruwad Real Estate Ismail Al Hammadi told Mubasher.

Earlier in 2018, the UAE cabinet announced a new decision granting some foreign competences and investors 10-year residency visas and lifting the foreign shareholding limit in national companies to 100%. 

Capitalising on a variety of protective legislation, the Emirati real estate sector is now more resilient and adaptable to sudden changes, Al Hammadi said.

This legislation may spur the market and push up demand for property purchase and lease across the UAE, the top official added.

Moreover, the new residency visas will give foreigners in the UAE a sense of stability that could encourage them to opt for ownership of properties instead of lease, Al Hammadi remarked.

Al Ruwad Real Estate’s managing director referred to the merger between Emaar and Aldar, stressing the importance of such step and its positive effects on the sector including the attraction of further investors to the UAE.

When asked about the opportune time for property purchase in Dubai and other emirates, Al Hammadi stated that now is the best time to invest in the GCC nation's real estate sector, as prices became more affordable.

Urbanisation has created new districts in Dubai that offer great investment opportunities, especially in areas nearby Expo 2020 site, Al Hammadi revealed.

Regarding the impact of the introduction of a 5% value-added tax (VAT) in the UAE on the real estate sector, the top official said that it did not have a big effect despite investors’ concerns, after the clarification of the new tax’ details.

The VAT was not imposed on all properties, as housing units – for instance – was exempted from the tax,  Al Hammadi noted.

 

Translated by: Muhammad Khalid