Dubai’s resilient real estate sector: Transitioning from conflict to prosperity – Khaleej Times

3 minutes, 46 seconds Read

Dubai’s stable political climate and business-friendly environment have helped in creating a secure environment for Indian investors to safeguard their investments.

Published: Sun 3 Dec 2023, 3:38 PM

Last updated: Sun 3 Dec 2023, 5:57 PM


Buy/sell, rent/lease residential &
commercials real estate properties.

The Middle East has been marked by a lengthy history of conflicts, and each of these events has exerted varying effects on the region’s real estate industry. From the Gulf War in the 1990s to the Arab Spring in the 2010s, these conflicts have frequently caused fluctuations in real estate markets, presenting both challenges and opportunities for the industry.

During times of conflict, investor sentiment tends to waver, but there is often a market rebound as investors regain confidence and seek growth opportunities. The Dubai’s flourishing real estate industry has always come out strong and resilient. It has also enjoyed significant economic growth over the past few decades, with real estate playing a pivotal role in the UAE’s economy, contributing nearly 5.5 per cent to the total GDP.

Dubai’s stable political climate and business-friendly environment have helped in creating a secure environment for Indian investors to safeguard their investments. The country’s strategic location as a global business hub, combined with visionary leadership and investor-friendly policies, has attracted substantial foreign investment. The construction of iconic structures like the Burj Khalifa and the Palm Jumeirah has further solidified Dubai’s reputation as a luxury destination and a centre for commerce. Despite occasional market fluctuations and oversupply concerns, Dubai’s commitment to infrastructure development, tourism, and economic diversification bodes well for the continued growth of its real estate sector and overall economic prosperity.

Dubai, renowned for its thriving property market and global appeal, has long been a safe haven for investors seeking stability and high returns. The emirate’s strategic location, business-friendly regulations, and world-class infrastructure have attracted investors from around the globe, making it a global hub for commerce and tourism with a diverse range of properties catering to various market segments.

Residential properties, including luxury apartments and villas, have been in high demand, driven by a growing population and an influx of expatriates. The commercial sector, including office spaces and retail properties, has also experienced significant growth, supported by the city’s position as a regional business hub.

Sankey Prasad, CMD, Colliers India.

Sankey Prasad, CMD, Colliers India.

Amid this backdrop, key questions arise: Will Dubai continue to attract foreign investment? Will the demand for real estate remain strong? How will potential disruptions in the supply chain impact construction projects and housing prices? These are crucial questions that need to be addressed to understand the potential impact of the conflict on Dubai’s real estate sector.

Dubai’s real estate industry has played a vital role in driving economic growth within the city and is one of the strongest in both the Middle East and the world. Government policies and initiatives in Dubai have been instrumental in ensuring stability within the real estate market, attracting international investors to both the city and the surrounding region.

Property Finder data recorded in the middle of this year indicates a significant year-on-year increase in property prices, demonstrating the resilience of Dubai’s real estate sector amid geopolitical uncertainties.

Despite the challenges, the market offers a wide range of investment prospects, and Dubai’s ambitions, such as the D33 10-year economic plan to double the economy’s size and make Dubai one of the top four global financial centres, underscore its potential. Government initiatives, like the golden visa, have played a significant role in attracting foreign investment and talented individuals, boosting new business licences issuance by over 50 per cent.

The Middle East region, with its robust economic foundations and varied economies, is expected to continue drawing foreign investment and maintaining steady growth in its sub-markets. Dubai’s real estate sector is anticipated to emerge even stronger after the resolution of the conflict, supported by its global appeal, strategic location, and business-friendly environment.

Strong demand for properties, particularly in the residential segment, is expected to persist due to population growth and international buyer interest. Dubai’s strong infrastructure and diverse economy will help it navigate the challenges of geopolitical uncertainties, and long-term investors may find attractive growth opportunities by capitalising on market fluctuations.

Going ahead the demand for Dubai’s real estate market is poised for further growth in the years ahead, with Indian investors playing a pivotal role. Key drivers for this optimistic outlook include the tech boom, government support for innovation, and significant infrastructure projects that will stimulate economic growth and attract more investments.

The writer is CMD, Colliers India.

This post was originally published on 3rd party site mentioned on the title of this site

Similar Posts

X
0
    0
    Your Interest
    Your Interest List is emptyReturn to Buying
    ×