Core sectors driving real estate
Dubai is a beautiful city and a true global melting pot of cultures, people, talent and entertainment. More importantly, Dubai has a very strong and vibrant business environment that is driven largely by pro-business policies, a very transparent & simple legal and regulatory framework because of which the best global businesses have set up shop here. You can call it one of the best global cities in the whole world and this tag it would be befitting to the amazing UAE destination. As we are well and truly on our way into mid-2018, it is predicted that Dubai will definitely hold onto its global city tag and this will present all stake holders, opportunity seekers a host of options to strike gold in Dubai real estate during this period. However this period also will be testing and exciting at the same time for Dubai properties.
As per the report given by The Heritage Foundation's 2017 Index of Economic Freedom, UAE is placed as the eighth freest economy globally and Dubai is the crowning glory of UAE for sure.
World businesses across various sectors have acknowledged positive business climate, investment boosting steps that the rulers have regularly taken and also the fact that this region has been proactive in providing a very dynamic, varied and easily functional private sector. Therefore it is not surprising that Dubai has managed to assemble and put together on its soil a plethora of world class business sectors like finance, logistics, maritime and tourism. Dubai has also managed to ensure that there is plenty of positive momentum and growth in the above sectors and this factor will automatically ensure the growth of Dubai property, Dubai luxury properties, office spaces, retail sectors, hospitality, industrial and many more.
Being a global city, Dubai is by default a part of the global economy and thus there are a number of opportunities that the Dubai market presents every investor.
Dubai Finance market
There are a lot of changes that are predicted in Dubai's development finance market and it is safe to say that a number of new sources of development finance that include Export Credit Agencies (ECAs), will be the new norm in Dubai. As one knows, Export Credit Agencies are government bodies that help with government-backed loans, guarantees and insurance to companies & businesses who work from in outside markets. This factor again is a big boost to the local companies and businesses. No surprises again that this move will help Dubai real estate to move forward in a big way.
Technology update in Dubai - the 3D factor
As discussed earlier in this article, the authorities in Dubai and UAE overall are very proactive when it comes to embracing changes and new technologies and implementing them. With this positive attitude Dubai will most likely usher in numerous disruptive technologies and one of them is predicted to be 3D printing. It is known that Dubai is aiming to 3D print one fourth of all new buildings by the year 2025 and this move will decisively bring down the expense of construction materials, labour and most importantly the time spent on the same. The 3D printing factor to be implemented via the concerned Dubai authorities will again be a big boost for Dubai real market and swing the pendulum towards a more robust property development scenario in Dubai.
VAT in Dubai – another important step
The fact Dubai has now announced the arrival of VAT (Value Added Tax) gives the whole Dubai real estate phenomenon a different outlook. It is supposed to have various kinds of impacts on the overall property market. In the short term it is assumed that it will impact real estate sales adversely. However in the long term, this move is supposed to be a masterstroke for the overall wellbeing of the economy.
The luxury real estate Dubai market will face some challenges as many property developers in Dubai will also look to shrink the overall area and size of apartments to suit the budget of suitable clients. Affordability and affordable housing in Dubai are going to be the new buzzwords apparently in the year 2018 and many property developers have started taking steps in this direction in locations such as Dubai South, Dubailand and Jumeirah Village Circle and many more locations are going to see the same steps too.
Off plan properties in Dubai are going to face a bit of challenge as Dubai property buyers have been advised to check the reputation of real estate developers, their track records, their delivery history, etc before buying under construction properties in Dubai.
Most property pundits across Dubai have noted that the property prices are close to bottoming out and are hopeful that real estate transactions in Dubai will remain robust overall and will be especially strong for the middle-income segment in the year 2018. In fact this year will present a lot of great investment opportunities for real estate investors in Dubai.
Dubai property market is supposed to get an additional 120,000 units planned for completion by the end of 2020. However this will not affect the supply-demand equation of real estate in 2018 as there is a lot of influx of sales due to demand driven by Expo 2020.
The year 2018 is supposed to provide with a variety of options real estate buyers in Dubai as there are a lot of property developers who are now much more sensitive than ever before in terms of creating homes as per the market demands. Affordable housing in Dubai will give an opportunity to fence sitters and your dream of buying a good property in Dubai could come true in the year 2018.