UAE real estate, which logged 9,000 deals worth AED26 million ($7.08 million) in October alone, is projected to grow at a CAGR of 8% between now and 2027, according to Unique Properties, one of Dubai’s leading real estate agencies.

 

Visa reforms, an influx of European investors, and consistent improvement that has garnered international recognition have contributed to this projection.

 

Ranked one of the top real estate markets in the world, the UK is expected to grow at a compound annual growth rate (CAGR) of 3% between 2022 and 2027 and the UAE is estimated to grow by 8% during the same time frame . Consistent improvement in aspects such as human capital and business activity is fanning the UAE’s growth. As per the 2022 Global Cities Index, Dubai and Abu Dhabi both increased their standing, while the former maintained its dominance in Mena and the Global Cities Outlook ranked the latter as a top-ten city of the foreseeable future.

 

Visa channels

The UAE’s government has enabled such growth by opening up visa channels for investors and highly skilled professionals alike. The Golden Visa, which has been secured by over 150,000 people so far, and the recent launch of the Green Visa are masterful implementations that have enhanced the country’s ability to sustain itself with confidence. Moreover, the irrefutable stability that the country provides, along with appealing benefits such as tax-free incentives, have bolstered the UAE’s strength amid times of turbulence.

 

While locations like Sydney and Stockholm are among the world’s hottest housing markets, they are still preparing to witness double-digit price declines with consumers in these markets facing mounting financial pressures as banks raise interest rates at a rapid pace. 

 

The UAE is arguably faring better due to factors like its strategic geographic location, unparalleled reputation for safety, and deft handling of the pandemic. French, Russian, and Germans are increasingly buying UAE real estate to reflect strong investor confidence from global buyers.

 

HNWI investors

Furthermore, with the UAE being home to approximately 70,000 millionaires, it is quickly becoming synonymous with high-net-worth individuals (HNWIs). These wealthy investors are injecting great deals of capital into the country’s real estate landscape as they look to secure trophy assets around the globe. This has benefitted the UAE’s overall economy as Dubai’s prime residential market has witnessed its most valuable property transactions spanning between AED128 million and AED598 million this year.

 

Arash Jalili, Founder and Chief Executive Officer of Unique Properties, UAE HQ, said: “The nearly 9,000 deals that were worth almost AED26 million in October alone reflects the highest value of transactions in a decade and reinforces the strength of the UAE’s real estate sector. Although prices in Dubai are likely to stabilise soon, the country’s property market is driven by strong fundamentals that will help it sustain through the looming global recession that many experts have predicted. With the UAE having proven its resilience in times of crisis, its real estate sector is poised to maintain its strong progress.”

 

The Qatar World Cup has supported the UAE’s real estate market in maintaining buoyancy for at least the short-term outlook. Many QWC attendees transiting through hubs like Dubai and Abu Dhabi, a good portion of which have the means to invest in the country’s property sector, are adding momentum to the UAE’s real estate landscape even amid a looming global recession.-- TradeArabia News Service