The United Arab Emirates (UAE) is on the verge of reclaiming its rightful position as the hotbed for real estate investment judging by the sheer number of multi-billion dollar projects that are currently underway, according to an industry expert.
Players in the regional real estate sector are optimistic that mega projects such as the much-anticipated Expo 2020 alongside the ongoing capital-intense infrastructure expansion works will continue attracting investors, developers and homebuyers to the region, stated UAE-based Al Ruwad Real Estate.
Notable areas in Dubai, in particular, that indicate that the once sluggish sector is on a recovery path include Emaar South and Dubai South where demand for residential units, both from owner-occupiers and tenants is on the increase, stated the property group.
Others include Mohammed Bin Rashid City, Dubai Creek Harbour, Dubai Harbour and Port De La Mer, it added.
According to Al Ruwad Real Estate, all these projects including others in and around Dubai have immensely benefitted from the ongoing government infrastructure development projects and their proximity to the Al Maktoum International Airport and the Metro Redline expansion.
“Dubai’s real estate sector is picking up pace at a significant rate thanks to the flurry of projects that are currently underway,” remarked its CEO Ismail Al Hammadi.
“The last few years have been sluggish but property developers, investors and homebuyers are now lining up to take full advantage of this much-awaited recovery,” he stated.
Apart from residential and commercial property, land acquisition is also on the rise in Dubai. This, according to Hammadi, is driven by the lack of space to develop more commercial and residential units in Dubai’s most popular and favorite locations.
“Despite its limited availability and constant increase in value, land in Dubai is still a hot commodity. Its lack of depreciation, unlike rent from an apartment block, which registered a 15 percent decline since Q3 of 2018, makes it a worthwhile investment choice for an investor, observed Al Hammadi.
According to him, land will always appreciate in value, which makes it a much safer investment.
“Land is one of the least risky investments and it is generally seen as a safe bet in terms of investment. Any land is a business opportunity. A vacant land is an endless pool of opportunities for small businesses, as well as bigger ones,” stated Al Hammadi.
Signature projects such as the Expo 2020 and the increased economic activities around it notwithstanding, investors eyeing the Dubai real estate market are closely monitoring other investment indicators in a bid to ensure a favorable return on their investment (ROI), he added.