Dubai’s Security, Safety and Crisis Management Key Factors for Hike in Real Estate Transaction: DAMAC Survey
Dubai, UAE — Aug 29, 2021: Dubai’s security and safety combined with its tackling of the Covid-19 pandemic are some of the main factors attributed to a recent rise in the number of international buyers in the city’s real estate, according to a survey conducted by DAMAC with real estate brokers and agents in the UAE.
The finding echoes the recent statement by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, and ruler of Dubai, that “Despite the UN's estimates that global foreign direct investment flows decreased by 42% in 2020 over Covid-19, the UAE witnessed 44% growth in FDI flows in 2020, compared to 2019, to reach AED 73 billion. Good Crisis management is a guaranteed investment.”
More than 70% of the respondents in the DAMAC survey attributed security and safety as being the prime reason for increased interest in Dubai’s real estate by international buyers, while more than 50% agreed that Dubai’s crisis management has played a role in the hike. Other key factors in the rise of international buyers include the open market conditions and the availability of premium properties in the Emirate.
“The UAE has done an exemplary job in reinvigorating its economy with an eye on the safety and health of its people along with timely reforms and support for businesses by the government. This resilience has helped boost consumer confidence and spending patterns, particularly in the real estate sector,” Ali Sajwani, General Manager of DAMAC said.
“Even with the pandemic continuing to create uncertainties and instabilities across a lot of places around the world, we believe that the UAE is all set for a strong growth over the next few months, with vaccination in full swing and the upcoming Expo 2020 Dubai in October expected to add further impetus to the country’s economy,” he added.
A report by Morgan Stanley found that Dubai property prices have risen for the first time in six years amid higher demand and a slowdown of project launches since 2017. Citing research from consulting firm ValuStrat, the US investment bank said there was a 1.2 per cent month-on-month rise in residential values in April, the index’s highest monthly growth rate in seven years.
Furthermore, the UAE Central Bank had recently stated in a report that the UAE economy is expected to post a 2.5% growth this year, while real non-oil GDP growth is expected to be driven by increasing fiscal spending, pick up in credit and employment, relative stabilisation of the real estate market, boosted by recovery in confidence and Expo 2020 Dubai.