“Buyer’s market” is one of those terms that has been used too many times by too many people last year to describe UAE’s real estate market. The softening prices, affordable bank loans, and all the available options made purchasing residential facilities way more attractive than renting. Especially residential facilities in high-end communities. But before we get into that, first we must explain what lead to those circumstances.
The influence of the government’s new visa policy for property owners
Data collected from Dubai’s Land Department suggests that the investments in the residential sector will increase in 2019. That’s something that we have already experienced in the first quarter of the year. That means the prediction is spot on and the chances are pretty good that everything will turn out as predicted.
The increased interest in residential real estate is due to few government policies. The most influential is the one that gives long-term visas to foreigners that own real estate property in the UAE. That way for anyone considering to stay in the country for longer than five years, it makes much more sense to buy than to rent an apartment. And as it turned out many jumped to this win-win opportunity.
The biggest impact will be felt in high-end communities
At the end of last year, many real estate experts predicted that high-end communities would be the ones that will benefit most. To be more precise, there will be a more significant demand for luxury real estate properties in communities that will now become available for a big group of people.
According to Dubai’s Land Department, there is 20% more interest in the luxury property for sale in the United Arab Emirates than last year, this time. That’s a huge step forward not just for luxury real estate, but real estate in general. At the same time, it is a clear sign that the sector is moving forward as the demand grows.
A report from Fubize Property suggests that the softening prices and the array of financial products on the market are the next two factors that drive this growth. According to the same report, some of the most demanded communities are Mudon, The Springs, Arabian Ranches, The Villa, and Palm Jumeirah. That reflects the apparent trend – more and more people are encouraged to buy residential buildings in high-end communities.
2019 will be a good year for the residential sector in the UAE. The first quarter is very encouraging and doesn’t suggest anything different. The government’s new visa policy seems to be the main drive, while other factors kind of followed that momentum.
And in the middle of that growth is the demand for residential buildings in high-end communities. Many people see this is an opportunity for a lifestyle change. Even expats that are in the UAE temporarily see this as a gateway to an investment opportunity.
Therefore, it is fair to conclude that 2019 will be a good year for residential, high-end real estate. All the data, expert’s predictions, and analysis suggest that.