The Dubai Land Department has published data on the volume of real estate transactions conducted in the emirate for the first half of 2018.
According to the department, during the first half of the year, the buyers made 27,642 transactions for a total of 111 billion dirhams. The innovation of this year was the decision of the Land Department to cancel the 4 percent commission for delay in payment for registration of real estate.
In turn, analysts of companies Reidin and Global Capital Partners on the basis of a joint study said that in the emirate, there is an acceleration in the flow of investment capital from the citizens of India and Pakistan. The demand of investors from these countries for the property of Dubai is caused by the instability of the dollar exchange rate – the purchase of real estate in the emirate allows foreigners to protect themselves against the risks associated with the devaluation of their own national currency.
Despite the fact that more and more wealthy citizens move to Dubai every year, the real estate market of the emirate is represented not only by premium assets. Investors who have the opportunity to invest only a relatively small amount of money into the purchase of real estate can choose from a wide range of affordable offers, characterized by an optimal ratio of price and quality.
At the moment, the cost of real estate in Dubai on average remains unchanged, although the market is highly fragmented, and in new areas there is a small but stable price growth. Experts, however, believe that the development of the city’s infrastructure, as well as the holding of the World Exhibition from 2020 to 2021, will have a positive impact on the dynamics of the market development, and we can soon expect a new price increase for all categories of objects, including commercial and residential real estate.
The expected growth in demand is also related to a number of decisions taken by the UAE government and Dubai. In particular, the validity of resident visas was extended from 3 to 10 years. In addition, foreigners are now allowed full ownership of business in the UAE, whereas previously it was possible only in the territory of the free economic zones of the country. These steps are designed to attract more foreign investors. Finally, there is a growing demand for real estate in the middle price segment. Real estate developers in Dubai, responding to this trend in a timely manner, provide the general public with more and more new assets that meet the requirements and opportunities of the middle class.
At the same time, the emirate market certainly remains attractive for wealthy investors interested in purchasing premium properties