Will the UAE Real Estate Market's Stability Continue? Experts Reveal Why 'The Golden Age is Still Ahead'
Introduction
Experts are increasingly optimistic that the UAE (United Arab Emirates) real estate market will continue its stable growth. At the International Real Estate Investment Summit (IREIS) recently held in Ras Al Khaimah, many experts expressed optimistic views on the market's future. This article will clearly explain why the UAE real estate market is stable and its future outlook, based on expert opinions.
Key Factors Contributing to the Stability of the UAE Real Estate Market
Experts point out that the current boom in the UAE real estate market is not temporary but a result of planned growth strategies. The main factors supporting its stability are as follows:
- Strong Government Initiatives: Ongoing projects nationwide, such as the construction of museums and new attractions, and the development of transportation networks between emirates, enhance economic confidence and stimulate real estate demand.
- Population Growth: The UAE's population is growing at record levels, creating genuine demand for housing.
- Stable Foreign Investment: Continuous inflow of foreign investment is boosting market growth.
Ramy Zaghloul, Chief Development Officer at Aldar Investments, stated, "With the government reliably delivering on its promises, demand is strong, prices are rising, and asset values continue to increase."
Current Market Situation: Demand Outpacing Supply
A major characteristic of the current UAE real estate market is that demand is outpacing supply. This has led to rising prices not only for new projects but also in the secondary (resale) market.
Zaghloul explained, "Demand is not keeping up with supply in most emirates, so prices in the secondary market are also starting to rise." This can be seen as evidence that the market is supported by healthy demand.
No Need to Worry About a Real Estate Bubble?
With rising real estate prices, some voices express concerns about a bubble. However, experts refute this view.
The background to price increases is not speculative activity but genuine demand driven by population growth. Experts point out that "the UAE market is different from other markets that boom and then crash," emphasizing that the market is maturing and increasing in stability. Even if growth slows, the market is predicted to remain stable.
Strong Performance of Major Developers and Future Outlook
The financial health of developers is also an important indicator of market stability. Saeed Mohammed Al Qatami, CEO of major real estate developer Deyaar, stated that the financial situation of key listed developers is robust, with good profits expected for the next few years.
Furthermore, large-scale hospitality (tourism-related, such as hotels) projects planned for the future are expected to further invigorate UAE's tourism and business sectors. Al Qatami added, "As more people visit and settle in the country, many small and medium-sized businesses will emerge here."
Summary
According to experts' analysis, the UAE real estate market is expected to continue its stable growth, supported by strategic government initiatives, solid population growth, and steady foreign investment. The situation where demand outstrips supply suggests a stable increase in prices, with minimal concerns about a bubble. The sound financial health of major developers also underpins the market's bright future. As experts stated, "The golden age is yet to come," the UAE real estate market will continue to be an attractive market for investors.
Reference article: Khaleej Times - UAE real estate market to remain stable as experts predict ‘good time’ ahead