Increased trade and business has brought in good fortune and prosperity to many nations one of them being the United Arab Emirates. Various factors have led to the emergence of the emirates as a leading investment and trade destination especially in the property sector.
Factors That Have Boosted Confidence the Property Sector
- Economic development and expansion and more so due to increased government and stakeholders efforts in the tourism, business and transportation sectors
- Increasing population and employment in any nation signals increased demand in housing thus raising the value of real estates.
- Country stability and the perception that Dubai is a safe haven has led to massive investments in properties in UAE
- Improved pricing of rentals driven by demand from business and employed people has made real estate’s the investment of choice. This has also caused a buying outlook among investors.
Financing Options Available To Investors
The new development opportunities for property in the UAE inevitably require financing for solid gains to be realized. Possible sources of funding include loans from banks, maximizing profits from IPO’s and mortgages.
Improved Housing Supply and Property Development
According to statistics, there has been a steady supply of completed office suits from the year 2012 and 2013.There has been an increased availability of hotels, retail stores and properties for rent in Dubai. According to expert market analysts, this increased supply causes a favorable sentiment spurring more interest in properties in UAE
- In an effort to create a favorable environment for development of the property sector, the government has undertaken various measures; these include;
- Creation of a planning guideline for developers,
- Making efforts to bring together real estate players from Dubai and abu dhabi for harmonizing key issues in the industry,
- Introduction of state backed development projects, which create more business for contractors as well as employment opportunities,
- Introduction of stimulus package into the property sector to increase growth rate
Sustainable growth and development must be backed by measures to conserve energy, water and the environment. There have been plans such as the energy star proposal, development of the solar energy station and measures for sustainable water management. The government has taken a more proactive role in enforcing regulation such as green buildings initiative, which will ultimately enhance the value of property in UAE.
Regional instability contributes significantly to the growth and development of a country or state. In the UAE, the instability in surrounding nations poses a great threat to this business hub and the sooner these issues are resolved the better it is for growth and development. The global currency issues such as the Americas fiscal problems witnessed in the year 2013 are also a threat to development.
Development of the property sector in the emirates has been influenced by various factors. Development and investment in properties has been boosted by increasing population, higher employment levels, strategic location for business and good development of the economy. Challenges such as instability in Iran and Syria have a negative impact on the development of this business hub. The government of UAE has been at the forefront in promotion of development through better regulations and consultations with industry players. Sustainability initiatives are also good for value addition.
This article is posted by Mr. Chitrang Vyas