Investor-friendly government policies have a positive impact on the investment environment in the country.
Kuwait Financial Centre Markaz announced the launch of its 'UAE Real Estate Outlook H1 2021' report that features indicators of positive signs of the country’s real estate sector sustained recovery. The report points out that there was a significant rebound in real estate transactions in H1 2021, which was supported by a number of factors, including swift roll-out of vaccines, reopening of economies and attractive investment yields. Moreover, in the nearest future this is expected to cause a ripple effect and lead to an increase in prices.
Bright macroeconomic prospects, underpinned by rising oil prices, a higher vaccination rate among the country's population and global events like Expo 2020, are expected to stimulate the rebound of the UAE’s real estate sector for the coming years. The country’s economic recovery from the repercussions of the COVID-19 pandemic has been on an upward trajectory since the third quarter of 2020. The economy’s resilience is further demonstrated by diminishing government deficit, an increase in expenditure growth and improving employment rate.
The Markaz report highlights that investor-friendly government policies incorporated to mitigate the impact of the virus, such as the 10-year golden visa program and 100 percent foreign ownership of commercial companies, as well as the new reforms in mortgage lending and the efforts taken to restrict new supply are positives for the real estate sector and the investment environment in the country. Further, residential rental gross yields in UAE remain relatively high (nearly 6 percent) when compared globally. Adding to that, UAE have witnessed the highest population growth in the Gulf region. This along with long-term plans for urban and sustainable development under the Dubai 2040 Urban Master Plan are expected to incentivize investors who are looking for a steady stream of income.