Dubai: thriving city for real estate market

Why write about Dubai now? Surely this is one of the questions you may be asking yourself after reading the headline of the article. The answer is really simple and is based on two premises: 1. Real estate transactions have grown more than 300% during this month of January; 2. Dubai will be my new personal and professional destination.

If you have not followed the evolution of Real Estate in this emirate, you may find it interesting to know some figures that are quite revealing of what is happening there within the sector: Only between February 11 and 18 of this year, a total of 2,098 real estate transactions worth 1,230 million dollars have been made,  according to figures published by Dubai Land Department.

2022 is expected to stop the city a year in which the investments made in Real Estate maintain this excellent upward trend with some really interesting figures; and all this despite the fact that the different variants of COVID-19 have caused some uncertainty in the market. However, thanks to strategic government initiatives, a resilient economy and the successful pandemic strategy carried out in Dubai continue, and will continue, to attract global investors.

Dubai the best city in 2040?

Allow me not to focus today on talking so much about my personal experiences and put the focus of the article on what I consider one of the most relevant cities, worldwide, of the XXII century. Not surprisingly, Dubai is known as the city that never sleeps, and the burgeoning construction industry is no exception.

The construction industry in Dubai is of vital importance in terms of its contribution to the economic development and GDP of the city. From integrated and sustainable roads and transport systems to entire towns and skyscrapers, schools and universities, hospitals and other healthcare facilities, construction has shaped the emirate's past and present. Now, in the middle of 2022, the sector is preparing to make Dubai the best city in the world to live in by 2040.

The implementation of the Dubai 2040 Urban Master Plan plays an important role in achieving this goal. Designed to make Dubai the city with the best quality of life in the world, the plan aims to provide the highest standards of infrastructure and urban facilities for citizens, residents and visitors. We are talking about a plan that proposes more than 120 projects and strategic initiatives through direct government investment, partnership with the private sector and the attraction of foreign investment.

A destination to live... and to invest

One of the things that has caught my attention the most over the past two years is that, while most countries were taking drastic measures at their borders since March 2020, the UAE has rolled out a red carpet for both investors and foreign talent in Dubai, thus allowing the construction of an attractive and cosmopolitan city.

A new museum is currently being built, restrictions on the Western lifestyle have been relaxed and recently aligned with the Monday-Friday workweek. Another detail that makes this destination attractive is the Golden Visa, a 10-year residence permit that allows its beneficiaries to enter and leave whenever they wish, have medical infrastructure and obtain a validated driver's license instantly.

According to Core's latest Dubai annual report, "The UAE government's continued focus on making the country the preferred location for tourists, businesses and residents due to its pioneering policies, economic and visa reforms, agile and secure management of the pandemic without affecting business continuity, is expected to be an agile and secure approach to business continuity,  continue to underpin the true real estate market and bolster demand across asset classes."

Expo Dubai 2020: Stimulating real estate growth

With the above so far it is undeniable that the real estate market in Dubai has become a focus of great interest for Real Estate, right? Let's think that 2021 was memorable within the sector, in several ways, because of the way the emirate's real estate market performed, but what are the factors that will influence the sector this year?

Without a doubt, Expo 2020 has helped stimulate Dubai's growth, with hotel occupancy and residential real estate prices on the rise. The event, which orbits under the concept 'A reset for the real estate sector', provides an overview of the prospects of the real estate market, the trends that drive sustainability, as well as the demand for flexible office spaces; themes, all of them that transform the international real estate sector, and that see accentuated this transformation in the Arab emirates.

• Integrating sustainability: The role of the construction sector in creating a more sustainable future is undoubtedly one of the world's macrotrends. Pressure from stakeholders is increasing from all investors, who expect more from the sector in this regard.
• A growing demand for flexibility in a hybrid world: Implementing hybrid policies gives employees the convenience of choosing their own work environments. But it has also put the stopwatch in place for companies to provide the spaces staff want and need for their office days. Relaxation spaces, healthy food services, and outdoor areas top the list of amenities that can encourage workers to return to their jobs, as they seek a sense of connection with peers along with environments that are almost as comfortable as home.
• Construction costs by 2022: With the REBOUND of the UAE construction project market during 2021, the residential sector became the highest performing within the awards in the construction sector. This trend is expected to continue throughout 2022.

Beyond the Real Estate trends that are seeing their reflection at Expo 2020 dubai, we observe how the stellar performance of the Dubai real estate market in 2021 has caught the attention of real estate investors around the world. Driven by years of infrastructure and population growth, the market has outpaced most global real estate markets, including Paris, London, New York and Hong Kong, for example. In fact, Dubai ranked third globally, in 2021, as the city with the highest growth in residential capital, registering 17%. A very significant figure, right? By the way, if you have any questions about it once you have read this article, I will be happy to give you an answer, this time yes, from the very heart of Dubai, the city that never sleeps.

David Granell Moreno

CEO