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UAE Real Estate Anticipating inflows of over AED 300B for 2022

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Real estate transactions in the UAE show no signs of slowing down as new government regulations and initiatives will boost the sector credibility, aid greater transparency, and enhance investor confidence.

Government implementations in the UAE's real estate market, which include tightening regulations on property advertisements and adopting new reporting standards for real estate transactions, will aid further stability in the sector. A sector that has already secured deals valued at over AED 170 billion in the first half of this calendar year.

Real estate developers, analysts, and top executives anticipate that these introductions by the Emirate’s government will see investments in the UAE property sector reach more than AED 300 billion by the end of the year.

KEY FACTORS CONTRIBUTING TO THE INVESTMENT INFLOWS

The introduction of extra transaction reporting requirements as part of the UAE government's commitment to enhance its regulatory framework has had a major impact on real estate investing in the UAE.

These reporting requirements have created a more secure, trustworthy, and transparent operating environment, leading to significant risk reduction and greater perceived strength of the UAE real estate environment.

More localized initiatives like the Sharjah ‘Holiday Homes Project’ and localized legislation such as the newly introduced property advertising restrictions in Dubai have equally contributed to the increasingly secure and attractive Emirati real estate sector.

SCALE OF INVESTMENT IN UAE REAL ESTATE MARKET

According to the latest figures, the attractive real estate environment in Dubai will carry on fuelling both the development of and demand for property in the UAE’s real estate market. Dubai’s real estate market alone has already attracted AED 115 billion worth of investments in the first half of 2022. But also, real estate transactions totaled AED 22.5 billion and AED 11.2 billion in Abu Dhabi and Sharjah, respectively, within the same time frame.

So, not only is investor sentiment within Dubai’s real estate market observing a consistent up trend. But equally, the cities of Sharjah and Abu Dhabi in addition to the UAE as a collective are observing the same trends.

These trends are anticipated to continue. Savills highlights in their 2022 report titled: “The Property Report – the United Arabi Emirates” that the UAE’s long-term demographic and economic growth is a clear indicator of what is to be expected in the UAE’s real estate market. They further highlight that according to official projections and the Dubai 2040 Urban Master Plan, Dubai’s population itself is expected to almost double throughout the next two decades, reaching a total of just shy of 6 million people.

Fuelled by substantial population growth along with favourable regulations, the demand for real estate in the UAE shows no signs of slowing down.

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