The UAE real estate market is expected to see a recovery in 2020, due to new government policies and the Expo 2020 Dubai event.
UAE real estate has seen a five-year decline following a drop in oil prices that began in 2014, as well as ongoing concerns about an oversupply of properties.
However, new government policies and the Expo 2020 Dubai event are expected to bring a welcome boost to the real estate market.
In September, Dubai formed a higher committee for real estate planning, headed by Deputy Ruler Sheikh Maktoum bin Mohammed.
It is made up of a number of senior property developers and aims to provide a better supply balance in the emirate’s property sector through greater collaboration between government-related entities and private sector firms.
Other measures rolled out by the government last year included 10-year visas for investors and professionals, as well as reforms to real estate laws in Dubai.
Another change saw the Real Estate Regulatory Agency given responsibility for overseeing the development, brokerage and management of Dubai property, while the Dubai Land Department took on the responsibility of registering rental contracts and regulating the relationship between property owners and tenants.
The Central Bank of the UAE is also considering easing rules regarding the cap on lending to the UAE real estate sector.
Last year, the Abu Dhabi government unveiled its Dh50 billion Ghadan 21 stimulus package, which is expected to have a positive impact on the UAE real estate sector.
The emirate also made changes to laws allowing overseas property investors to own freehold property in designated zones such as Saadiyat Island. Foreign investors in Abu Dhabi’s real estate market were previously granted leasehold for a maximum time period of 99 years.
Expo 2020 is also expected to boost the UAE real estate sector, with experts predicting that if even just 0.5 per cent of the expected 25 million visitors decide to invest in property it will be enough to turn the UAE real estate sector around.
2020 could the year UAE real estate makes a comeback.