Ritika Sharma / Emirates Business
The GCC real estate market is likely to be resilient and register robust growth at a slow pace despite the slump in oil prices by the end of 2016 and beyond. Mega events such as Dubai Expo 2020 and Qatar FIFA World Cup 2022 are likely to provide the boost in region’s tourism and real estate industry in the future, experts claim.
The UAE’s real sector has survived a tough year with great resilience and the sentiment across the market remains largely positive. According to reports released ahead of the upcoming Cityscape event, the market is poised to grow at a compound annual growth rate (CAGR) of 6.4 percent from 2015-2019 with rising population being the main growth driver.
David Dudley, International Director at JLL MENA and one of the main participants in the exhibition, says that while the impact of reduced oil prices on the economy will lead to a short-term slowdown in demand.
“The current phase is a slow-down and a relatively minor correction, rather than a major crash – with reduced supply coming through at a time of weak demand, allowing underlying dynamics to catch up with the pace of value growth,” he says. Despite headwinds, opportunities exist in UAEs real estate market in 2016 as it looks set to witness the initiation of a number of projects leading up to Dubai Expo 2020 and Abu Dhabi Vision 2030, and they are likely to help rejuvenate both real estate and business activity.
Wouter Molman, Director of Cityscape Group at Informa Exhibitions, the organisers of Cityscape Abu Dhabi, said, “The current market dynamics will prompt exhibitors and industry leaders to debate alternative approaches to their investment strategies.”
Good time for mortgages
Figures from a new YouGov survey show that 58 percent of UAE consumers choose mortgages and finance payments when considering current and future property investment. This preference mirrors borrower confidence in the market as 42 percent of the survey respondents expect it to remain stable and 40 percent forecast its growth in the coming 12 months.
Financing and loans
Whether you’re planning to move into your home or buy it as an investment to achieve regular rental income and capital appreciation, there is no shortage of residential property options to choose from. As of March 31, there are over 67 home loans listed on Souqalmal.com.
For those looking to finance their home purchase, there’s no scarcity of home finance options in UAE, with almost 60 percent of the home loans being offered at reducing rates of 3-4% per annum, and over two-thirds offering finance for off-plan and under construction properties as well.
What’s new this time at Cityscape?
2016 marks the 10th edition of Cityscape Abu Dhabi giving visitors the opportunity to connect with leading real estate professionals, keep up to date with the latest trends in global real estate, discover what’s new and gain industry insight through content-rich programmes all under one roof. A number of developers will be launching a range of new large scale projects at Cityscape Abu Dhabi this year with a number of exhibitors selling on-site.
High profile speakers within the real estate sector will be taking part in the Abu Dhabi Market Overview Conference, sharing their expertise on the introduction and implementation of the new laws and regulations.
The new regulations targeting escrow accounts, land and property registration, strata law, the licencing of real estate activity and new fees have been designed with investors and customers in mind. Therefore, increased transparency and lower risk will entice more stakeholders and further stabilise the market.