UAE Real Estate Sector: The Revival Post COVID-19

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UAE Real Estate Sector

When the global economy slowed down in 2009, the UAE real estate market was among the most severely impacted. Before the pandemic, the market had reached maturity.

Industry insiders predicted that the real estate market would stabilize in time for Expo 2020.

However, the pandemic’s arrival has since impacted the sector’s ability to recover, with worldwide lockdowns and movement restrictions adding to the pressure on the business.

Due to travel limitations that have altered how we live, work, learn, and socialize, the global COVID-19 viral outbreak has had a long-lasting and profoundly crippling effect on economies worldwide. Sustainable homes are now a trend.

Uncertainties have hindered the economy of the UAE in its main drivers, such as tourism, hotel, retail, and real estate industries being particularly severely hit.

The United Arab Emirates has one of the most exciting and promising real estate markets; therefore, the government took all necessary steps by making them back on track.

Some of the vital decisions behind such a swift recovery of the real estate market are:

Visa Initiatives

An important factor in shaping the market for real estate in the UAE, and Dubai in particular, is the country’s multiculturalism, with expatriates making up an estimated 89 percent 1 of the population.

The government has implemented a number of ground-breaking visa policies that have positively impacted the market, such as:

  • A ten-year valid visa for foreigners.
  • A five-year renewable visa for retired residents is also eligible for international students in some cases.
  • A newly issued, self-sponsored visa for employees from all over the world, even if their companies are based in another country.

Nationality For Expatriates

The UAE Government has approved changes to the citizenship law that, under certain circumstances, permit investors, professionals, people with unique abilities, and their families to become Emirati citizens.

Long-term economic growth is the goal of this historic choice, which will support the leadership’s goal of expanding and luring talent. The rise in demand for real estate should be increased as an outcome. Expats can go for eco-friendly houses for sale in the UAE to invest in real estate.

Virtual Real Estate Events

Despite the suspension of large-scale shows, all the major organizers in the real estate industry had to be flexible and learn to adapt.

One such endeavor was Cityscape Intelligence, an online resource that gives investors a general understanding of the products in the real estate business.

A hybrid concept, also known as a physical event, live and in-person, was introduced by Cityscape and took place at the Dubai Exhibition Center in early November for three days.

This occasion made it possible for investors to choose investments that suited their interests and professional requirements, expanding the real estate sector.

Reworked Company Laws

The government eliminated the previous criteria for UAE enterprises regarding a minimum of 51% of issued share capital of the company being held by one or more Emirati shareholders in order to allow direct foreign ownership and investment in the UAE prior to Expo 2020.

By luring in international investors, this policy reform promoted economic and social development.

Exciting Offers By Lenders

Lenders in the UAE provided a range of incentives to encourage renters to purchase homes, including extraordinarily low-interest rates on mortgages, the elimination of some administrative fees, and the raising of the loan-to-value ratio by lowering the mortgage gap for first-time investors.

Timely Vaccination

Only vaccination offered any chance of stopping the pandemic. With the goal of immunizing the whole population by 2021, the UAE successfully launched a vaccination campaign.

By March 2021, they had reached their goal of vaccinating more than half of the population. The UAE was able to establish itself as an international model.

At the same time, other nations suffered from the side effects of vaccination, Thanks to the leadership’s vision and its world-class amenities, including a world-class airport, logistics, and storage facilities.

The government’s efforts paid off, as there was a sharp decline in the number of illnesses occurring each day, which helped the real estate market as people resumed their usual lives.

Expo 2020

The pandemic interrupted all significant activities worldwide, but Expo 2020 was the center of attention. The Expo’s theme, “Connecting Minds, Creating the Future,” acknowledged the need for cross-cultural and cross-regional cooperation to develop sustainable solutions to global issues.

At the same time, the sub-themes of opportunity, mobility, and sustainability identify the primary forces behind progress.

Expo 2020 attracted more than 25 million visitors from around the world, opening up several hotel sector prospects. It gave the real estate industry a boost in terms of expansion.

Dubai Building Code

The executive council approved the new “Dubai Building Code,” which established a set of construction regulations supporting sustainable growth and innovation in building design. This tremendous development boosted the real estate market.

It streamlined building regulations and requirements, which decreased construction costs. It accelerated the end of the design phase of construction projects to the highest international standards.

Rental Agreements

In Dubai, a new rule regulating rental agreements was put into effect, setting rents for three years. With the help of this legal amendment, landlords could find dependable tenants and avoid raising the rent every year.

Health Precautions

After the pandemic, most people got more concerned about their surroundings and believed living close to nature was more beneficial. Construction companies all over the UAE initiated sustainable housing societies that use modern civil engineering techniques to create an eco-friendly environment.

Properties in such houses have a relatively better value than others, making the market more competitive.

Conclusion

The real estate market in the UAE has great potential, and it is only going forward. Post covid, things have revived beautifully in the favor of the real estate market.

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Preeti Shah is a person who loves checking out different styles and designs of houses. She took interior designing in college and is practicing in the field of home improvement for five years now. In her spare time, she is usually searching the web for interesting and fascinating home designs.

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