The last few years have seen significant changes in the Gulf region, most significantly the drop in oil prices, which began in 2014 and prompted governments to look for new strategies and diversify their economies.
In the UAE and many other countries, this drop affected the real estate market and resulted in five years of declining prices and concerns of an oversupply of properties. The sales prices in Dubai were 7 percent lower for apartments and 9 percent for villas.
. However, careful measurements that were taken under Dubai’s 2021 vision and other factors contributed to a 1.4 percent rise in Dubai’s new House Price Index last year, and many experts stated that 2021 would be a year of improvements for the real estate market! In this article, we will look at these predictions and what they mean.
Expo 2020: A Golden Opportunity
By now, it’s safe to say that you have heard a lot about Expo 2020 and all the hype that surrounds it. And for all the right reasons, the real estate sector will be affected by this international event as numbers show, with more than 11 billion AED in construction contracts, 25 million visitors, and more than 192 participating countries. As one expert put it, if only 0.5 % of these visitors decide to invest in real estate, then the market will see a further significant rise.
A plan for the future
As we have stated, the UAE took a group of measurements to overcome the drop in oil prices and solidify its economy for the long-term future as well! In 2019, the government issued long-term visas for investors, organized the efforts of governmental entities and private sector real estate firms through a higher committee for real estate planning, and encouraged the off-plan market. Some emirates like Abu Dhabi allowed foreign investors to own freehold properties in designated zones, much as Dubai did. These measurements increase confidence among investors and show that the country is thinking for both the short and long-term.
The way ahead is green
Experts also point to the green and sustainable direction that UAE is taking as one key factor in stabilizing its property market and cementing its place in the future. Right now, many environmentally friendly initiatives are supported and launched, suggesting that the future is for green plans that emphasize recycling, water wastage, and energy usage. This tendency will lead to Dubai being a healthier place to live and have a positive impact on its property value as a leader in the global race for sustainable living.
A changing market
What would history tell us about the property market? Among many things, history shows that this market is prone to ups and downs, due to the many factors and aspects related to it. However, previous experiences show that it’s also manageable, and with proper plans such as these being applied with Dubai 2021 Vision, it has all the potential to flourish and improve.
If you are an investor looking to seize a perfect moment like this, or just looking to settle in an ideal home in a global destination like Dubai, we at Lavista can help you with that. Our expertise extends to more than 20 years of extensive understanding of the market and happy clients!
Contact us today.