With the number of investments in the UAE skyrocketing, it is less than telling that the real estate market is seeing an inevitable boost. Despite rising inflation anxieties and the unsettling geopolitical climate of the world this past year, the real estate market in the region has been booming.
In addition, the incentivization of investments through proactive government reforms such as the golden visa and transition toward a digital economy has increased property interest within the region. Within Dubai, there has been a sense of caution surrounding rising interest rates and an overall concern over the current global market. This has led to an increased sense of optimism when it comes to investing in property.
The renewed faith in the market has also led major developers to reinvest their profits in launching new and improved projects to make full use of the current property market; the UAE market has seen a 25 per cent sale increase in Q2 of 2022.
Apartment supply has gone from 6,000 in Q1 to 7,000 in Q2 and villa handovers went up to 520 properties. There has also been a great deal of conversation around repurposing and including infrastructure upgrades at the Expo2020 site which will be seen for many years now.
Within Abu Dhabi, according to Asteco’s Q2 2022 report, about 1,300 apartments were handed over and spread across various areas in Abu Dhabi. In comparison to Dubai, apartment rentals have remained fairly the same as in the previous Q1. In terms of rents for the rest of the year, they are projected to be elevated towards Q3 and Q4 but experience a dip at some point. In 2023, there is a 9 per cent projected corporate tax on domestic and foreign firms. This will give the government a chance to direct its attention to other priority sectors, bolstering diversification and growth in various supplemental fields.
